Zenefits automatically calculates adjustment plans when we detect that workers have been under- and over-deducted for their benefits. However, since these adjustment plans could span several pay periods, handling these adjustments directly in payroll is the fastest way to make these corrections.
Manually Adjusting Payroll to Correct Under-deductions
When an under-deduction is detected, we suggest an adjustment plan that increases the individual deductions at a rate of 2x their typical deduction. However, if you prefer to resolve this directly with your payroll provider, or handle these discrepancies yourself, here's how:
- First, take a look at the Deductions page (requires login) to find the total amount of the discrepancy.
- Then, manually increase their deductions in payroll by the total amount.
- Once they are caught up, readjust their deductions in payroll back to the normal amounts in Zenefits.
- To avoid mix-ups between Zenefits and your payroll provider, please let us know if you plan to do this - either by contacting Support or by declining the plans from the Adjustment page (requires login).
Manually Reimbursing Employees for Over-deductions
When an over-deduction is detected, we automatically suggest an adjustment plan that decreases their deductions at a rate of 2x their typical deduction. However, the best way to handle over-deductions is to reimburse the individual immediately for their overpayment. This can be done manually in your payroll account.
If you decide to manually reimburse the affected individuals, please decline the plans from the Adjustment page (requires login).
You will also need to contact your payroll provider to process reimbursements. Reimbursements for pre-tax deductions are more than simply paying back the overpaid amount in their next paycheck. You will need to correct the previous payroll information to account for the increase in taxable wages and taxes - your payroll provider can assist you with this.