There may be times when you need to make changes to an employee's pay after you've closed the payroll period. In this case, you need to issue a manual payment.
⚠️Important: When correcting errors from previous periods near the Financial Year End, ensure you verify that payroll corrections are accurate to remain compliant with HMRC regulations. This includes checking pension adjustments and overpayments, as well as confirming that employee records are accurate for payslips and P60s.
Process a manual payment
To process a manual payment in PeopleXD Payroll, follow the steps below.
📌Note: If you need clarification on the thresholds to be entered, refer to the current thresholds published by HMRC.
Click Manage Payroll then highlight the relevant pay group.
Under Inputs, click General then click Issue Manual Payments.
Enter the following details:
Employee reference number.
Payroll period.
PO number: This is optional.
Issue date: This needs to be in line with the employee's appointment start and end dates, assuming it's appointment-based.
PAYE code.
Number of days.
To add payment details, click Add.
Ensure the appointment ID and expense codes are entered for all fields.
Under the manual payments, enter the employer NI or PRSI.
📌Note: If there's no NIable or PRSIable pay for this period, you can enter 0 here.
Under Manual Payment Pay Codes, check all details are correct.
⚠️Important: You can't amend these later if they're incorrect. You need to enter all values as a positive figure, and the multiplier on the pay code will be applied.
Check the appointment and NI details are correct then click Save.
If required, click Copy Payslip then exit the Issue Manual Payment screen.
Once you've done this, if you need to make an additional payment to the employee, you need to do this outside of PeopleXD Payroll, for example, via a cheque or manual credit transfer.
Previous tax year
📌Note: You can not cancel and issue an manual payment if the last period of the tax year is closed but before you have run year end. Once year end has been completed you can cancel and issue a manual payment in the previous tax year.
If you need to make a correction after the year-end has been processed, you can cancel the original payment and issue a manual payment for the relevant period in the previous tax year.
After making these changes, remember to submit a Previous Year Full Payroll Submission (PYFPS) to HMRC to report the correction.
Additionally, you need to update the P60 cumulative details.
Portal
Click Year End then highlight the relevant company.
Click Manage.
Under Post Cleardown Activities, click Maintain Cumulatives.
Back office
Click CorePay then click Update.
Click Advanced Update Features then click Year End.
Click Maintain Year End Cumulative Details.
Manual payment in previous year
To process the manual payment, follow the steps below.
Ensure year end processing is complete.
Process a cancel payment to reverse the incorrect pay, if required.
Issue manual payment with the correct amounts.
Submit PYFPS to HMRC to report this correction.