1. Pay adjustments occur when employees are not paid correctly the first time due to issues like incorrect timekeeping or leaves not entered correctly. 2. To process a pay adjustment, document the hours actually paid versus the hours that should have been paid using a form that cross-foots to 40 hours with positive and negative values as needed. 3. Include supporting remarks to explain the reason for the adjustment and retain all documentation for at least 3 years.

1. How was the
employee
paid?
How should
the employee
have been
paid
Do your
calculations
cross-foot to
4o hours?
Pay
Adjustments

2. In the absence of perfect
timekeeping, adjustments
must be made.

3. Pay Adjustments……
…occur when an employee is not paid correctly the
first time.

4. Why does this happen?
• Employee does not receive timekeeping credit
for hours worked.
• Employee makes an incorrect clock ring.

5. ………OR
• Supervisor fails to enter employee’s leave into the
pay system.
• Supervisor fails to correct clock rings.
• Supervisor fails to make manual clock ring entries.
• Supervisor fails to heed system warnings.
• Supervisor fails to monitor system reports.

6. The reverse of the items
mentioned would result in
the minimal need for pay
adjustments.
…..This should be the goal of both the employee
and the supervisor.

7. How do you make things
right?

8. Start with
documentation!
• Employee Pay Stubs
• Work hour reports
• Assignment Orders

9. Documentation
Tells the
story…
Supports
your
actions

10. A pay adjustment has a simple
focus…
 Howthe employee  How the employee
was paid….. should have been
paid…..

11. A pay adjustment has a simple
focus…
How the employee was How the employee should
paid….. have been paid…..
 Total Work Hours  Total Work Hours
 Premium Hours  Premium Hours
 Alternate compensation  Alternate compensation
hours at higher-level pay hours at higher-level pay
 Leave Hours  Leave Hours

12. Enter the hours
paid
into the left-had side of
 Total Work Hours
your adjustment form in
 Premium Hours the amounts represented
 Alternate on your source
compensation hours
document.
at higher-level pay
 Leave Hours • Include the leave codes
• Consult your timekeeping
manuals

13. Enter the
corrected
hours
to be paid into the right-
hand side of your
adjustment form as
dictated by your
supporting
documentation.

14. Either side of the adjustment
form may include negative
values that will offset the
total number of hours to
allow the transaction to
cross-foot at 40 hours, the
workweek standard.
See the example……….

15. Total Description
If the hours do not
65 Wrk Hrs
cross-foot,
double check
-25
Overtime Hrs
your figures.
Consult your manuals to ensure
40
Cross-foot Hrs
proper coding and negative
values.

16. Remarks
The remarks section of the
form allows the preparer to
provide a brief explanation
for the adjustment.

17. Explanation examples
• Entitlement leave adjustment
• Grievance settlement
• Incorrect hours
• Leave taken but not paid

18. All components complete
• Paid Hours
• Corrected Hours
• 40 hour cross-foot
• Supporting Remarks

19. Finished
• Retain a copy of the completed form.
• Retain supporting documentation for a
minimum of 3 years.
• Mail completed form to the address
identified in the directions.
• Monitor payroll to ensure that the
correction has been made.