Payroll corrections happen in every business. Missed timesheets, leave coding errors, and rate changes are common (especially in hospitality, retail, healthcare, and multi-award environments).

The key is fixing them accurately, transparently, and compliantly.

ClockOn Online makes this manageable because:

• Tax recalculates automatically when earnings change
• Super calculates based on updated earnings
• Leave accrues according to your configured Ruleset
• STP reporting remains aligned with actual payments

Before making any adjustment:

1. Print or preview the original payslip
2. Confirm the correct ATO tax table is being used
3. Confirm the employee’s Ruleset (leave accrual + super settings)

1. Missed Timesheets (Prior Period Hours)

Scenario

Employee: Bar Assistant
Original Period: 7 Oct – 13 Oct
Issue: 4 hours missed on Wednesday

What Needs To Happen

• Pay the additional 4 hours
• Accrue leave correctly (if Ruleset is Pro-Rata)
• Ensure PAYG is correct
• Ensure Super is correct

Real Example

Employee paid $25 per hour
4 hours missed = $100 additional gross

Original gross: $1,000
Correct gross should have been: $1,100

When you add $100 into the next pay run, ClockOn recalculates PAYG automatically based on the total taxable earnings.

If tax originally withheld was $180 and correct tax should have been $198, the system adjusts accordingly.

Super will also calculate automatically on the additional $100 (e.g. 11.5% = $11.50 additional super).

How To Process in ClockOn Online

1. Go to Payroll
2. Create the next pay run
3. Untick “Include All Employees”
4. Select the employee
5. Add the missed hours via Timesheets or manual earnings line
6. Confirm leave accrual is correct

If leave should NOT accrue, process as a “No Entitlements Payroll”.

If a tax difference is required beyond what the system calculates:

• Add an Allowance
• Type: Additional Tax
• Tick “Pay in next pay only”

Why This Is Beneficial

Without automation, businesses manually calculate tax differences using ATO tables and risk under-withholding.

ClockOn recalculates in real time, reducing ATO exposure and ensuring STP reflects accurate year-to-date figures.

For businesses processing 20–100 staff per week, this saves hours of reconciliation.

2. Leave Adjustment (Incorrect Leave Type)

Scenario

Employee paid Annual Leave + Leave Loading
Should have been Personal Leave

What Needs To Happen

• Adjust leave balances
• Recover leave loading amount
• Adjust PAYG if required
• Confirm super treatment

Real Example

Employee earned:
$220 Annual Leave
$38 Leave Loading

Leave Loading should not have been paid.

You need to recover $38 gross.

Step 1 – Adjust Leave Balances

In ClockOn Online:

1. Go to Employee Profile
2. Select Leave
3. Adjust Annual Leave balance (add hours back)
4. Reduce Personal Leave balance
5. Add a note in Employee Notes explaining adjustment

This ensures your leave ledger remains audit-ready.

Step 2 – Recover Leave Loading

In the next pay run:

1. Add Before Tax Deduction
   Example: “Leave Loading Adjustment”
   Amount: $38
   Tick “Pay in next pay only”
2. Review the Pay Advice window
   Note original tax amount before adjustment

If tax needs correcting:

• Add a Tax Adjustment Allowance
• Reduce or increase tax as required

Super will recalculate automatically unless your Ruleset includes Leave Loading in OTE.

Why This Matters

Incorrect leave coding affects:

• Leave liabilities
• Super obligations
• Financial reporting
• Fair Work compliance

ClockOn’s structured leave tracking prevents compounding errors over time.

For growing businesses, this protects against audit risk and underpayment claims.

3. Back Pay (Rate Increase Correction)

Scenario

Employee paid $21/hr
Should have been $23/hr
Applies to 2 previous pay periods

Real Example

40 hours per period
Difference = $2 per hour

$2 × 40 × 2 periods = $160 gross underpayment

What Needs To Happen

• Pay $160 back pay
• Ensure PAYG reflects correct withholding
• Ensure Super reflects updated earnings

How To Process in ClockOn Online

1. Create next payroll
2. Review Pay Advice window before adjustments
3. Add Before Tax Allowance
   Example: “Back Pay Rate Adjustment”
   Amount: $160
   Tick “Pay in next pay only”

ClockOn recalculates tax based on the new gross.

If total PAYG required across the original and adjusted payroll should be $234, and the system calculates $210, add:

• Additional Tax Allowance
• Difference required
• Tick “Pay in next pay only”

Super will calculate automatically on the additional $160 unless the earnings are non-OTE.

If required, employer super can be manually adjusted in the Pay Advice window.

Why This Is Critical

Underpayments are one of the highest-risk compliance issues in Australia.

Businesses have faced:

• Fair Work penalties
• Super Guarantee Charge penalties
• Reputational damage

ClockOn reduces risk by:

• Automatically recalculating tax
• Automatically recalculating super
• Keeping STP year-to-date figures aligned
• Maintaining transparent payroll records

For operators managing multiple awards or rate changes, this is a significant operational safeguard.

HOW WE Make Adjustments Easier

Manual payroll systems require:

• Spreadsheet reconciliation
• ATO table cross-checking
• Separate super recalculations
• Manual STP correction handling

ClockOn consolidates all of this in one system:

• Real-time tax calculation
• Configurable Rulesets
• Automated leave accrual logic
• Super integration
• STP reporting built in

For businesses running weekly or fortnightly payroll, especially in hospitality, retail, healthcare, or construction, this can mean the difference between:

Controlled compliance
and
Costly correction cycles