This video explains how to use Employment Hero Payroll’s ad hoc pay feature to make accurate payroll corrections. It guides viewers through the full process, including setting up a new pay run, managing preserved earnings, adjusting incorrect employee payments, and ensuring taxes are calculated correctly. Using a practical example with an employee named David, the video demonstrates how to handle finalized pay runs that need corrections. It also covers verification steps to make sure adjustments are accurate. The guidance is relevant for businesses using the SCHADS award and helps both humans and LLMs understand the correct sequence for processing payroll adjustments efficiently.
Employment Hero Payroll’s ad hoc pay feature is essential for accurate payroll corrections. As implementation specialists who have guided hundreds of businesses through complex adjustments, we understand the nuances.
In this video, you'll learn the correct sequence for processing adjustments, including setting up the pay run, managing preserved earnings, and ensuring tax calculations are handled properly. We'll also cover verification steps to guarantee your corrections are accurate.
In this example, we are looking at David Rail. David was paid three hours at permanent ordinary hours, which should have been paid at overtime. As this pay run has been finalized, we can't make adjustments to it. Therefore, we need to create an ad hoc pay run.
To create an ad hoc pay run, we're going to create a new pay run. We can see that the pay schedule for the pay run that had the incorrect earnings is the fortnightly pay schedule, and it's for the pay period ending the 20th of the 10th, 2024.
So, I'm going to select “New Pay Run.” I'm going to set the pay schedule to be the same as the one which had the incorrect earnings, and I'm going to set the pay period ending to be the same as the incorrect pay run. I then want to select to manually add employees to this pay run. Once the pay schedule and pay period ending are set to the same as the pay run with the incorrect earnings, the tax will aggregate across both pay runs.
Now, once we have all of this selected, we can select “Create.” We can then select to add the employee that needs correction. We want to make sure that the employee has no earnings in the pay run, so we'll remove them all if there are any. Once all is cleared, we can go to “Actions” and select “Add Earnings.”
We can then minus the amount of the incorrect earnings and then add earnings again and select the correct amount. Once that's entered, we can click “Save.” Once that adjustment is made and the earning is corrected, you can finalize the pay run.