Payroll discrepancy form 2025

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A payroll correction is a payroll run that happens off your regular cycle to fix an error made in a previous payroll. For most payroll mistakes, time is of the essence when it comes to fixing them, which is why employers often opt for correction, or off-cycle, payroll runs in those situations.
There are two ways to rectify a payroll error, either update the year-to-date figures in the next regular Full Payment Submission (FPS) report filed or send an additional FPS before the next regular FPS is due. It is not possible to reverse out an FPS once submitted to HMRC.
Employers should fix any payroll errors right away. For most employers, that means by the next paycheck. That said, you might not find the error or the employee might not report it quickly. In that case, its important to know about payroll processing laws and employee pay rights when the error is uncovered.
The best way to handle this is by being as forthright as possible and correcting the error. Your employee needs that information in writing. The employee payroll error or discrepancy letter should be kept in the employee file and in your internal records, as well.
Employers must immediately fix a payroll error. By the next payday for the majority of employers.

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A payroll discrepancy form is a document used by employers to document and investigate discrepancies between their payroll records and employee information.

discrepancy form