How do I fix an underpayment to an employee?

When an employee is underpaid, the method used to get them the rest of their net pay depends largely upon the urgency. Here are some common methods:

1. Write the employee a check on site for the difference (same day)
2. Run a correction payroll to issue a corrected deposit. You would need to contact Customer Service  to set up a special off-cycle payroll (next business day) 
3. Include the additional amount on the employee's next paycheck (next payroll check date)

If you are going to pursue an direct deposit correction, please contact DP Customer Service for assistance. If you would prefer to handle the correction in one of the other two ways, read on!

The first step in correcting the underpayment is accurately determining how much the employee was underpaid, which can get complicated because of the tax rate adjustments. The most accurate way to calculate the difference and record the correction in payroll is to void the original transaction entirely and add a new check reflecting what should have happened.

Here's a step by step:

1. In Payroll Processing > Payroll Entry > Individual Time Entry, then select the employee you wish to correct.  
2. To void the original check, click "Add New" in the horizontal blue bar that runs across the middle of the screen, then choose Check Type: "Void", select the original check you wish to void, uncheck "Include Direct Deposit Reversals", and Save. (Contact Customer Service  to void the check for you)
3. To calculate the amount the employee would have received on a correct version of the check, click "Add New" again.
4. Choose "Additional Check" from the drop-down menu, and Save.
5. Enter the employee's earnings and hours as they should have been, then click "Preview Check" in the horizontal blue bar.
6. Once you're satisfied that the information is correct, hit "Post as Manual" to save the calculation as an adjustment. 

Once you have calculated the corrected check, you can subtract the original net pay from the corrected net pay the employee received. That amount is what the employee still needs to be paid.

At this point, you can either write the employee a check on site or add the difference in pay to the next scheduled payroll. If you are going to add it to the next payroll, the simplest thing to do is add earnings in a non-taxable earnings code (such as reimbursement). Contact DP Customer Service if you need assistance or a recommendation!