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FAQ: I accidentally set up a contract for an employee twice and overpaid them; how can I fix this?

If a contract mistakenly was set up twice for an employee (for example, at the beginning of the school year, the contracts were copied to the new year and a previous year’s contract was also updated with the new year’s amounts), complete the following steps for the most common way to resolve this:

  • On the Wages screen in the Employee File, edit one of the two contracts for the employee so that the Contract Balance field and the Remaining Payments field are zero, and save the changes.  For example, if a previous year’s contract was set up for the new year in addition to the new year’s contract being there, edit that previous year’s contract to reflect its original information with zero as the contract balance and zero as the remaining payments.
  • Add a new contract for the current fiscal year end, entering the amount that was overpaid to the employee as a negative amount in the Total Contract and Contract Balance fields.  The Total Payments and Remaining Payments fields can reflect the appropriate number of payments in which the overpayment will be repaid (for example, enter 1 if the overpayment will all be corrected in the next payroll, or enter 2 or 3 if the overpayment will be corrected over the next 2 or 3 payrolls).  Be sure to use the same expense accounts and cross references as the contract that was paid in error.  Then save the new contract.

During the next payroll, the contracts for both the next payment and the overpayment correction (negative amount) will be calculated for the employee.