Description

You’ve overpaid an employee and will need to fix it. If paying by check/cheque, the employee may or may not have already deposited it. If paying by direct deposit/EFT, the bank may have already processed the bank file. In either case, this article will provide a potential solution.

Pre-Requisites

None.

Solution

I have not posted my payroll, but have printed my checks/cheques.

1. Destroy the incorrect checks/cheques. 
2. Modify the employee’s paycard record with the appropriate information. 
3. Re-create and re-print the checks/cheques.
4. Proceed with payroll normally. 

I have not posted my payroll, but have created my bank file. 

1. Delete the bank file on your computer. 
2. Modify the employee’s paycard record with the appropriate information.
3. Re-create the bank file. 
4. Proceed with payroll normally. 

I have posted my payroll and have already sent the bank file to the bank.

If the bank has not yet processed the bank file, you will have to work with your bank to cancel the file submission in order to allow you to resend the file. 

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WARNING: If you are recovering the amount from the employee, remember that their taxes were calculated on the higher payment amount. Therefore, the taxes for the overpaid employee will be different. When you recover the amount, you will need to run payroll and enter the ‘gross’ amount as a negative in the payroll category that you overpaid with. Ensure that the corresponding taxes are also reflected! 

I have posted my payroll and the employee was paid with a check/cheque, but it has not yet been deposited.

If the employee has not yet deposited the check/cheque, you will need to reverse their payment in Harmony. 

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