If you have overpaid an employee, HMRC guidance is to correct the employee's year-to-date figures on the next FPS submission. To do this, follow the steps under the relevant section.
Employee has left
Previous period leaver
Use the adjust over stated FPS wizard to change the employee's year-to-date figures.
Current period leaver
📌Note: If the employee has not yet been processed through the leavers wizard, follow the amend pay section.
Once the employee has been processed through the leavers wizard, their record will be locked. If you need to make further changes, follow the steps below.
Click Payroll, and then click Run Payroll.
Find and select the required employee.
Click Change Status, and then click Change Locked Status.
Click Yes, then click Ok.
Move on to the amend pay section.
Amend pay
For the year-to-date changes to be reflected on reports, the employees pay will need to be corrected and processed through the payroll. To do this, follow the steps below.
📌Note: You will need to calculate the amount the employee overpaid.
Click Payroll, and then click Run Payroll.
Find and select the required employee.
Select the pay element that processed the overpayment.
Reduce the rate by the amount to be reclaimed.
📌Note: If the overpaid amount has already been recovered, add a non-taxable and non-NICable earnings pay element, and enter the deduction amount.
Click the Calculate tab, and ensure the employee's earnings are correct.
If changes are required for system pay elements, use the adjustments button.
Click Save.
Adjust P11 history
Updating the employee's P11 history will cause SelectPay to recalculate the employee's tax and NI contributions in future periods, often resulting in a refund. To do this, follow our guide on manually entering P11 history.
Employee is not being paid
If the employee is still on the payroll but is not due to be paid in the next period. Follow the steps below.
Click Payroll, and then click Run Payroll.
Find and select the required employee.
Using the pay element that overpaid.
Enter the refund value into the rate field.
Enter the quantity of '-1'.
Click Save.