In any payroll system there are many totals that need to be kept for tax reporting and other purposes.

When a mistake has been made and discovered in a later pay period one has to amend the incorrect total. Many payroll systems allow this to be done directly by the payroll clerk leading to possible discrepancies at the end of the tax year. For example, the total tax shown on tax certificates does not balance with the tax deducted according to the books.

In nuQ this is not possible, as no totals are actually kept. All data for each pay period is held in the payroll database and when ever a total is required the total is calculated from the data in the database for the appropriate period. For instance, if an employee was present for the whole tax year, the system would be requested to get the total tax deducted from 1 March to 28 February.

This means that an adjusting entry must be made for the past period in which the error occurred. nuQ allows entries to be made in the current pay period but effective for a previous period. This adjustment will be shown on the current payslip, clearly distinguished as a transaction for the past period, without effecting the current pay period. Refer to “Backpay” for an explanation as to how this works.

In our example, the total tax deducted as shown on the tax certificate will be made up of entries that have appeared on payslips and any discrepancies can accordingly be easily resolved.

Those with payroll experience will appreciate just what this means!