The Margin

Why payroll corrections should not rewrite history.

By Runbook Payroll · Updated October 2, 2026

A payroll correction should not pretend the first run never happened. It should preserve what was approved, record what arrived late, and derive the exact change.

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The correction sequence.

The record should answer what changed and why.

1Original runKeep the facts, rules, calculation, approval, and evidence that existed at the knowledge horizon.

2Late factRecord the rate change, missing time, work location, deduction, tip, reimbursement, or tax fact with its effective and recorded dates.

3RecomputeRun the same payroll period under the corrected knowledge and compare it to the approved result.

4DeltaPay, collect, carry forward, or explain the difference with residuals and unsupported claims visible.

Why this matters.

Payroll is accounting, worker trust, tax record, and legal memory at the same time.

Bad correctionRiskBetter correction

Overwrite the checkNo one can tell what was known at approval.Preserve the approved run and append the new fact.

Manual adjustmentThe amount may be right but unexplained.Derive the delta from the recalculation.

Screenshot supportEvidence gets detached from the calculation.Attach source, rule, math, approval, and settlement evidence.

Make the correction explainable to the worker.

Consider a time entry reported after payroll approval. Keep the approved run and its source facts intact, then record when the additional time applied and when it became known. Compare the corrected calculation with the approved result. That comparison should explain the changed wages, withholding, deductions, and net pay without erasing the original paycheck.

The explanation should connect the late fact to the difference and identify what still needs action: payment, accounting, tax reporting, or a worker question. A recalculated amount is not proof that a payment settled or that a tax form was corrected. Keep those steps visible until their own evidence exists.

A negative difference also is not automatic permission to recover wages. An accountable person must determine the lawful next step for the circumstances. Preserving the record helps explain the issue; it does not supply missing authority.

Sources and scope

The Department of Labor’s FLSA recordkeeping guidance describes required wage and hour records for covered workers. The IRS’s Form W-2 guidance explains what workers can do when a W-2 is missing or incorrect. Neither prescribes Runbook’s event model; preserving approvals and deriving changes is our design choice.

A correction is a payroll event, not a cover-up.

Runbook's correction model keeps original history visible and derives the change.

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