What is meant by Correcting payroll?
The term "correction of payroll" refers to the process of rectifying errors in already created and transmitted payrolls. These corrections may be necessary when incorrect information, such as erroneous tax data, social insurance contributions, or working hours, has been reported. The goal is to establish the correct payroll data and rectify any discrepancies to meet legal and financial requirements.
Typical software functions in the area of "correction of payroll":
- Automatic Calculation Correction: The software automatically adjusts wages and salaries when errors in payroll data are detected.
- Retroactive Adjustments: Corrections are made retroactively for the affected payroll periods, and the differences are considered in the next payroll run.
- Creation of Corrected Payslips: The software generates new payslips with the corrected data and transparently displays the changes.
- Reporting for Employers and Employees: Automated reports that show the corrections made and their impact on salaries and contributions.
- Integration with Tax and Social Insurance Filings: Automatic transmission of corrected data to the relevant authorities, such as tax offices and social insurance carriers.
- Notification System: Automated notifications to employees and authorities about corrections made.
- Correction History and Archiving: Storing all corrections and their reasons in a history log to enable future reviews and audits.