Before you begin

If you need to make changes to the last pay period re-open the payrun.

The rollback process allows you to rollback, undo, recalculate, re run (it can be called many things) the payroll for two or more pay periods. If you need to make changes to the last pay period you can re-open the payrun.

Before you begin the rollback process:

1. You have no open pay periods. If the period is not ready to be finalised, the payrun has to be deleted to enable rollback.

2. Have a copy of the reports produced:

• At the start of the rollback period.

• Each additional period finalised.

  Example: If the payroll is in month 6 and you wish to rollback to month 2. You will need the reports for month 2, 3, 4, 5 & 6.

  • Recommended reports:

    • Gross to net.

    • Analysis Report with employee breakdown,

    • Payslips.

    • P30 Month end summary report, highlights the amount to be paid to the HMRC for that tax month. or P32 Month end summary report, highlights the amount to be paid to the HMRC for that tax month..

3. During the re run of payroll, some pay elements are not changed:

   • Pension deductions

     Pension deductions can be edited manually. During the payrun select pension pay and select Override this calculated Value.

     

     The employer is responsible for correcting any over or underpayment with the pension provider.

     The rollback process is designed for those who made an underpayment in a previous period. If used for over-payments you must check the pension contributions meet the minimum amount then amended in the pay run and reproduce any reports. Over-payments are should be collected in the future pay periods with a written agreement from the employee. ACAS Guide: Reclaim money owed by an employee. External website

   • Pension Refunds

     Not recalculated, cannot manually edit, adjust using another pay code.

   • Loans

     Not recalculated, cannot manually edit, adjust using another pay code.

   • Benefits

     Not recalculated, cannot manually edit, adjust using another pay code.

   • Absences/Leave entries

     Not recalculated, cannot manually edit, adjust using another pay code.

   • Permanent changes made to the employee record.

4. Pension assessment:

   • The employee is not reassessed. The employee will have the same status as the original payrun.

5. The rollback recalculates: 

   • Tax

     The tax code for the period (if different) will be used.

   • NI

   • Student Loan A government loan that students can use to help pay for their education.

   You are reasonable for ensuring third parties (HMRC His Majesty's Revenue and Customs is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support, the administration of other regulatory regimes including the national minimum wage and the issuance of national insurance numbers., Pension provider) are updated and any under or over payment of monies made.

Next: The rollback process

Good to know...

• Employees must have each pay period calculated and finalised individually, bringing them up to date with the rest of the payroll. This is due to the way PAYE PAYE or Pay as you earn is an HM Revenue and Customs’ (HMRC) system to collect Income Tax and National Insurance from employment. works. Each pay period can be impacted by the previous one. If you change the taxable pay in a pay period this can change the tax deduction in the subsequent pay period. This requires a recalculation.

• Its recommended you document the reason for the rollback, this can be used if questioned at a later date..

• You must send another full payments submission (FPS Full Payment Submission is an RTI online submission to be sent on or before each payday. This informs HMRC about the payments and deductions for each employee.). The resubmitted FPS contains all employees, not just the employees selected for rollback. This will replace the previous FPS. This will be sent with the Reason Code: H correction to an earlier submission. HMRC guidance. External website

• If a misalignment occurs, please contact HMRC directly.

• If you made a mistake in a previous tax year, send an Earlier Year FPS.

• ACAS Guide: Reclaim money owed by an employee. External website

• GOV.UK Guide: You paid your employee the wrong amount or made incorrect deductions. External website