How do I fix an employee's timecard after payroll has already run?

[Adrummond]

She was paid for too many hours.

[Summer2024]

Hi, @Adrummond ! Welcome to the Square Community. 

Once payroll has already been run, you can’t change the hours in that past payroll, but you can correct it going forward. Here’s how it works with Square Payroll:

Option 1: Deduct the overpayment from a future paycheck (most common)

Square Payroll doesn’t let you “reverse” a completed payroll, so the usual fix is to recover the overpaid amount on the next payroll.

Steps:

1. Go to Payroll → Run payroll

2. Select the employee

3. Add a post-tax deduction (or custom deduction) for the overpaid amount

   • Label it something clear like “Prior payroll hour correction”

4. Run payroll as normal

This keeps everything clean for payroll records and taxes.

Option 2: Employee repays the overpayment directly

If the employee prefers to repay you outside of payroll (check, cash, etc.):

• Keep written documentation of the repayment

• Do not deduct again in payroll

• Keep records for accounting and audit purposes

Option 3: Adjust the timecard for record accuracy (optional but recommended)

Even though it won’t change the already-run payroll, you can:

• Edit the timecard to reflect correct hours

• This helps future reporting and avoids confusion later

 Important things to keep in mind

• Always get employee consent before deducting from a future paycheck (required in many states)

• Deductions cannot reduce pay below minimum wage

• Taxes already paid on the overpaid wages are corrected automatically over time via future payroll filings

I hope this helps!