Step 2. Reverse Any Incorrect Payments From the Previous Payroll (Optional) |
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What is a Reversal? |
| A reversal effectively deletes all the entries made when an incorrect payment was processed. Note that reversals do not stop payment and should only be entered after placing a stop payment. |
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Why do I have to do this? |
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By reversing all the amounts used to calculate the original incorrect cheque, you will ensure that the employee's Year-to-Date values for T4s will be updated, all earnings will be in the system to create an accurate ROE, and the employer portion of CPP/QPP and EI will be adjusted. Vacation accrual and/or provincial payroll taxes will also be adjusted, if applicable. It's not likely that you'll have any reversals to make on your first payroll because you wouldn't have any Powerpay payments to reverse, but this step may be necessary for later payrolls. |
| Task 1 | Task 2 | Task 3 | Task 4 | Extras |