Dear All, I've made a mistake in the preparation of the June salary. I left out some components like OT, Incentive, etc. After transferring the salary into the bank, I rectified this error in the salary. As a result, the amount sent to the bank and the amount on the payslip differ. My question is, how should I rectify this error? In July, under which head should I show this amount? It will affect the gross salary, and because of that, it will impact the ESI amount. Please clarify.
Regards,
Sanjeev
From India, Delhi
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1Regards,
Sanjeev
From India, Delhi
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Salary Preparation Workflow
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; otherwise, the salary statements and salary slips would be deemed erroneous or false.
Regards.
From India, Delhi
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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; otherwise, the salary statements and salary slips would be deemed erroneous or false.
Regards.
From India, Delhi
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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
From India, Calcutta
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Thanks,
Sangeeta
From India, Calcutta
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Dear friend, as a Personnel manager, you should keep a notebook separately for salary preparation. In that, you have to note down information as you receive it:
- From employees, like changes in their personal details, bank account numbers, etc.
- From management, like increments, promotions, designation changes, etc.
- From other departments, like overtime, etc.
When you are preparing the salary, refer to the book and tick off each item one by one, which will solve all problems. You will also finish the work without any leftovers.
Regards,
P. Ramachandran
From India, Madras
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- From employees, like changes in their personal details, bank account numbers, etc.
- From management, like increments, promotions, designation changes, etc.
- From other departments, like overtime, etc.
When you are preparing the salary, refer to the book and tick off each item one by one, which will solve all problems. You will also finish the work without any leftovers.
Regards,
P. Ramachandran
From India, Madras
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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.
Steps to Ensure Accurate Salary Transfers
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.
Regards,
Sunita Jadhav
From Malaysia
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Steps to Ensure Accurate Salary Transfers
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.
Regards,
Sunita Jadhav
From Malaysia
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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
From India, Hyderabad
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For Your Information:
Gross salary + Arrears O.T. - total Deductions = Net pay.
Hope you are clear about this.
Regards,
SV
From India, Hyderabad
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