How to Correct an Underpayment in 7shifts Payroll

Lindsay Calado

Updated May 15, 2025 16:51

This article outlines the steps to take when an employee has been underpaid on a previous payroll run using 7shifts Payroll.

Issue

An employee was paid less than they were owed in a previous payroll cycle. This may be due to missed hours, incorrect wage settings, or other adjustments not being applied in time. You now need to correct the underpayment and ensure it is properly recorded in the system.

⚠️ Important Considerations:

Effective Wage Dates: If employee wages were updated after a payroll was already processed, calculate the difference owed and pay it via an off-cycle payroll.
Minimum Wage Settings: Updating the Labour and Compliance Minimum Wage setting alone does not change employee wages. Ensure employee role wages are updated in their profile to apply new rates going forward.
Learn more about Updating Employee Wages here.

Solution

Run an Off-Cycle Payroll to issue the missing wages. Depending on the cause of the underpayment, you may choose to enter missed hours manually or apply a lump-sum payment using a Custom Earning code.

Learn more about running an Off-Cycle Payroll here.

⚠️ We recommend consulting your accountant or payroll advisor to confirm the appropriate method for your business and compliance needs.

Option 1: Manually Enter Hours or Sync from Timesheets

If the underpayment is due to missed or unapproved hours:

Manually add the missed hours during the off-cycle payroll run, or
Sync hours from the timesheet if they are already recorded.

Tip: For consistency in reporting, it’s recommended that any missed hours be added to time clocking if they aren’t already present.
Learn how to add punches in 7shifts time clocking here.

2. Use a Custom Earning Code

For a lump-sum correction (instead of adding hours):

Calculate the total amount owed and add it using a Custom Earning Code such as Non-hourly regular.
This approach is useful when back-paying an employee due to a wage rate correction or other lump-sum scenario.

Learn more about Custom Earnings here.