How to correct an underpayment in 7shifts Payroll

Issue

An employee was paid less than they were owed in a previous payroll cycle. This may occur due to missed hours, incorrect wage settings, or adjustments that were not applied before the payroll run was processed.

Cause

• Underpayments are often caused by missing or unapproved hours in 7shifts Time Clocking at the time of the payroll run.
• Individual employee role wages do not automatically update when changes are made to the general Labor and Compliance minimum wage settings.
• Wage updates made with a past effective date do not retroactively adjust payroll runs that have already been processed.

What to do

To correct an underpayment, you must run an off-cycle payroll in 7shifts Payroll to issue the missing wages. Choose the appropriate path below based on how you need to record the payment. Here is more information on: 7shifts Payroll: Run an Off-Cycle Payroll

Option 1: Manually enter hours or sync from timesheets

Use this method 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 consistent reporting, add any missed hours to 7shifts Time Clocking before starting the payroll run if the hours are not already present.

Option 2: Use a custom earning code

Use this method for lump-sum corrections, such as back-paying an employee for a wage rate adjustment, without recording specific 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.

Here is an article with more information on: 7shifts Payroll Custom Earnings Code

Option 3: Correct a $0 net pay due to withholding

This path applies if an employee received a $0 payment because their total earnings could not cover the required tax withholdings.

• Have the employee update their W-4 form if needed.

• Run an off-cycle payroll to pay the employee the correct amount.

• Reach out to the 7shifts Support team to void the $0 pay item from payroll history so reporting stays accurate.

Here is an article with more information on: What happens if an employee’s net pay can’t cover taxes?

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