1 follower Follow

How do I adjust a pay for someone I have overpaid previously?

Dear Sir/Madam,

I found I selected the wrong code for the payroll for an employee for a previous pay. We overpaid him in that last pay, so I was trying to deduct this amount from his current pay. Can you please help me with this problem? 


Robert Owen Answered

Official comment


To clarify the previous answer:

A Pre-Tax Deduction can be used to repay a number of hours overpaid.   Using a pre-tax deduction will reduce the employee's gross earnings,  and will impact their tax and other deductions. 

A Post-Tax Deduction will be deducted from the employee's net pay and will not affect their tax calculation. 

Jill McCorkindale
Comment actions Permalink

Please sign in to leave a comment.



I suggest you create a new pay code (Setup -> Pay Codes) with the following attributes: 

Code - OVER 

Description - Overpayment Adjustment 

Tax Type - Pre-tax deductions

You can leave all the other fields unless you're using Xero in which case you should enter your wages Xero account code (typically 477).

You can then add a line for that pay code on to the employee's pay, with a quantity of 1 and a rate of for the amount of the overpayment.

Robert Owen 0 votes
Comment actions Permalink