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How to Cancel a Processed Payroll

If you have processed a payroll and need to make changes because of an error, you can cancel the payroll and make the necessary corrections before processing it again. This is useful when you need to correct items such as employee pay, deductions, allowances, or other payroll information.

 

Important: A processed payroll can only be cancelled if the payment has not been disbursed. If the payroll was paid through Direct Debit and the payment has already been disbursed, the payroll cannot be cancelled from the system.

Before you begin

Make sure that:

  • The payroll has been processed via Cheque.
  • You have the required admin permissions to manage payroll.
  • If the payroll contains successful Cheque payments, reset those payments before cancelling the payroll.
Step 1: Reset successful Cheque payments

If the payroll contains a successful Cheque payment, the payment must first be reset to an unprocessed state.

  1. Go to Pay Schedules.
  2. Select Regular.
  3. Open the relevant payroll.
  4. Select the successful Cheque payment you want to reset.
  5. Click Batch payout actions.
  6. Select Reset.
  7. Enter a reason for resetting the payment.
  8. Click Reset.

You should see a confirmation that the payment was reset successfully.

Note: Resetting a Cheque payment changes it from a successful/processed state back to an unprocessed state. This allows the payroll to be cancelled and updated.

Step 2: Delete the existing pay schedule

After resetting the pay schedule, delete the existing pay schedule before creating a new one.

  1. Go to Pay Schedules.
  2. Locate the pay schedule associated with the cancelled payroll.
  3. Open the Actions menu.
  4. Select Delete.
  5. Confirm the deletion.

Important: Deleting the pay schedule removes the existing schedule so that you can create a new schedule with the corrected payroll information.

 

 Step 3: Cancel the payroll

Once the payment has been reset:

  1. Go to Payroll.
  2. Select Records.
  3. Locate the payroll you want to cancel.
  4. Click Select action.
  5. Select Cancel payroll.
  6. Enter a comment explaining why the payroll is being cancelled.
  7. Click Cancel payroll.

A confirmation message will appear once the payroll has been cancelled successfully.

 

 

Step 4: Find the cancelled payroll

After cancelling the payroll, locate the payroll again under the Cancelled payroll records.

  1. Go to the Cancelled payroll section.
  2. Locate the payroll you just cancelled.
  3. Open the payroll's dropdown/action menu.
  4. Select Cancel.
  5. Select Preview Payroll.

Important: You must preview the cancelled payroll before you can update and Refresh it.

 

Step 5: Make the required changes

After cancelling the payroll, you can update the relevant employee or payroll information.

Review the payroll carefully to ensure the correction has been applied correctly.

 

Step 6: Reprocess the payroll

Once all corrections have been made:

  1. Submit the payroll again.
  2. Review the payroll calculations.
  3. Approve the payroll.
  4. Process the payment.

Important payment limitation

Payroll cancellation is not available after payment processed via Direct Debit.

In summary:
Processed payroll → Reset successful Cheque payment (if applicable) → Delete Pay Schedule → Cancel payroll → Make corrections → Reprocess payroll.