Get up and running with free payroll setup, and enjoy free accounting profit definition expert support. Try our payroll software in a free, no-obligation 30-day trial. If you have employees that are union members, their wages might be pre-negotiated.
- A payroll adjustment refers to any change in an employee’s regular pay.
- With Hourly, you can choose from standard payroll adjustments, like bonuses or reimbursements, or you can create a custom adjustment.
- When you adjust an employee’s wages, make sure you document the change and why you made it.
- Place your company name and logo on the header section of the template.
- Sometimes, payroll adjustments are made by employers due to special reasons such as rewarding an employee for exemplary work or penalizing for infractions made by an employee.
Sample Payroll Adjustment Form
Changes in job duties, such as an increase in responsibilities, can also mean a pay adjustment. This change may also come with a new job title or exemption status. Retro pay is typically counted as a supplemental wage, which describes any additional (or supplemental) compensation. Supplemental pay might explain any additional wages on top of an employee’s regular salary, such as a commission, bonuses, or overtime. If you underpaid an employee, especially during a pay period, what should you do next?
Check your state laws
A payroll adjustment software enables you to assign variables for a certain period of time, both on an individual basis and for each department. With TriNet, you’ll find the resources and systems you help with onboarding and payroll processing services as you scale up your business. Even without an HR department, our HR software and self-service tools make it easy for you to make payroll adjustments. Staying on top of wage and hour and other employment-related laws is an important part of payroll compliance.
Employee Pay Adjustments: Reasons Why
You must do certain things to ensure a smooth adjustment of the employee’s wages. Before you change an employee’s wages, make sure you understand pay adjustments and how to make them. Making payroll adjustments for employees is an important part of running a business.
Payroll software like Hourly makes it easy for management or human resources to set up adjustments whenever you need them. Importantly, when retro pay is calculated into wages, ensure that the employer understands what the retroactive wages are for. It’s important to clarify, and address any confusion, when offering pay retroactively, because retro pay isn’t ‘extra’ wages, but rather payments previously earned. Any pay missed during changes to a shift pattern, where an employee isn’t fully compensated, can create a shortfall.
This adjustment can be resolved (almost) automatically so that the new joiner can sign on their first day. Check out our free downloadable guide to learn what the FLSA does and doesn’t require, get an overview of other labor laws, and more. This communication is for informational purposes only, is not legal, tax or accounting advice, and is not an offer to sell, buy or procure insurance.
Not to mention, putting it in writing—and getting your employee’s authorization—can act as documentation. After choosing and downloading a Payroll Adjustment Form Template, you can now start customizing it by placing your company name and logo. Place your company name and logo on the header section of the template. Make sure that it doesn’t overlap with other elements of the form. The template already has the elements that most Payroll Adjustment Forms contain.