Made a Salary Mistake by Missing OT and Incentives – How Can I Fix It for July?

Dear All,
I've done a mistake in preparation of June salary. I had left some of the components like OT, Incentive etc. After transferring salary into bank, I rectify this error in salary. So the amount which I had sent into bank and amount in pay slip got differed. My question is how I would rectify this error. In July in which head I should shoe this amount. It will effect on gross salary, because of that it will affect ESI amount.
Please clarify
Regards,
Sanjeev

Normally, the salary should be prepared first; then salary slips are printed; and finally, the copies are sent to Finance/Accounts for disbursements to respective bank accounts.

Not following the above workflow creates complex problems which you are facing now. In case you could not include the OT, incentive, etc., while transferring salary to the bank; it should have been truly and faithfully recorded in the salary slips. Then it could have been easy to rectify the error in the next month's salary (and salary slips) by showing them as ARREARS, and transferring the salary (inclusive of arrears) to the employee's salary accounts.

Now that you have prepared the salary slips with the OT, Incentives, etc., your company should remit the balance amount to the employee's account immediately. That is the only right solution; else the salary statements and salary slips would be deemed erroneous or false.

Regards.

I agree with the above post. You can show the due salary as arrears in the next month's salary. However, regarding ESI, as the amount would increase for the month of July salary, I think that similarly for the month of June, the amount paid for ESI was less than the actual due to miscalculation. Please note that ESI calculation should not vary because if the calculation had been right, you would have been paid the same amount for ESI as you are going to pay this month.

Thanks, Sangeeta

Der friend,
as a Personnel man, you should keep a note book seperately for salary preparation. In that you have to note then and there you are receiving informations
* from employees like change in their personal details, bank account number etc.,
* from management like increment,promotion,designation change etc.,
* from other departments like ot, etc.,
When you are preparing salary you refer the book tick one by one which will solve all problem.
You will also finish the work without any leftover.
P.Ramachandran

Dear Sanjeev,

This sometimes happens; it's a human mistake. If you rectify it in the same month, they can seek approval from your higher management and transfer the amount immediately to the employees' accounts. Then, send an email or SMS to them, cc'ing their department head. This way, there will be no confusion, and they will understand your problem while also appreciating your job.

Before transferring to the bank account, ensure that you check all the data, including attendance, OT, PF, PT, and ESI calculations for each individual employee. This will reduce errors or eliminate them altogether.

Sunita Jadhav

Dear Sanjeev,

No problem, it's all human error and it can be easily rectified. You can add it to next month's salary in the net pay by showing it in the Arrears O.T. column. After the gross salary column, the arrears column shall be incorporated.

For your information:
Gross salary + Arrears O.T. - total Deductions = Net pay.

Hope you are clear about this.

Regards,
SV