Adjustment runs and back pay

An approved payroll is locked, so a mistake found later is corrected with an adjustment run: an extra run for the same period that pays more or takes something back. This guide shows how to make one by hand, and how Sahora works out back pay when a salary change is dated in the past.

How an adjustment run works

• It belongs to an approved period and has its own pay date.
• Each line is taxed with the employee's year-to-date figures. Contributions are recomputed for the month where a line counts toward them.
• It is computed, submitted and approved like any payroll, by someone other than the preparer, and has its own journal entry and payout files once released.

Make an adjustment run by hand

1. Open Payroll, click the approved period and find the Adjustment runs card.
2. Under What it is for, describe it (for example "Missed overtime of October 1-15").
3. Choose the Pay date and click New adjustment run. The adjustment's own page opens.
4. Add a line for each employee:
   • Employee
   • Kind: Earning (pay more) or Deduction (take back)
   • Amount (₱)
   • Code (a short code of your own, for example ADJ_OT) and Line on the payslip
   • For an earning, Tax treatment: Taxable (salary, overtime, allowance), Bonus / other benefit (yearly tax-free ceiling) or Not taxable (exempt by law). Tick Counts toward SSS compensation (e.g. missed overtime or allowance) when it applies.
5. Click Add line. To take a line out, click Remove.
6. Click Compute payroll, check the Result, then submit it for approval.

To throw away a draft adjustment run, click Delete draft run and confirm.

Retro pay for one employee

When you record a salary change dated inside or before an approved period, the employee's page shows a Retro pay card. It lists the periods whose pay would differ under the new rate: basic pay, absences and lates, premiums, overtime, night differential and holiday pay, each recomputed with that payroll's own settings.

1. Open the employee and find the Retro pay card.
2. Choose the Pay date of the adjustment.
3. Click Create the adjustment run.

The difference is paid as salary (taxed, and counted toward SSS). Open the run from the period's Adjustment runs card to compute and submit it.

Back pay for many employees

Use this when a rate applies from a date already paid for many people, for example a wage order applied from its original effective date.

1. First record the new rates with the past effective date: Employees → Bulk changes → Scheduled increase, choosing Minimum wage in force (from the statutory table) when it is a wage order. See Salary changes and scheduled increases.
2. Open Payroll → Back pay.
3. Under Rates changed from, choose the date the new rates start, then click Find differences.
4. Sahora recomputes each approved payroll since then and lists each employee with the difference not yet in an adjustment run. Untick anyone you don't want to include.
5. Choose the Pay date of the adjustment runs and click Create adjustment runs.

Sahora makes one adjustment run per pay group, on its latest period. Open each from the Payroll page to compute, submit and approve it.

If no approved payroll differs, you see "No approved payroll since … differs from the salary records on file."

Good to know

• Lines can be changed only while the adjustment run is a draft. After any change, compute it again.
• Adjustment runs are for approved periods only. To change a payroll that isn't approved yet, recompute it instead.
• Creating adjustment runs is for Owner / Management and payroll officers.