Skip to content
Breadcrumbs

Texas Payroll/Personnel Resource

Note: To navigate this guide on a mobile device you must use the Table of Contents.

Correcting Underpayments of Compensation
Required Adjustments and Supporting Documentation

Required Adjustments to Accumulators

State agencies and institutions of higher education that correct an underpayment of compensation must adjust all relevant payroll accumulators, such as:

  • Agency-paid taxes.
  • Employee-paid taxes.
  • Limits on benefit replacement pay (BRP).
    – and –
  • Deferred compensation.

Agencies must maintain appropriate supporting documentation for the adjustment.

Supporting Documentation for Adjustments/Corrections

State agencies and institutions of higher education that correct an underpayment of compensation must retain supporting documentation that contains the following information:

  • The amount of the underpayment.
  • The pay period for which an underpayment occurred.
  • The pay period compensation is increased for to eliminate the prior underpayment.
  • The number of working hours being used to calculate the underpayment if it was caused by paying the employee for fewer hours than the number of hours actually worked.

To learn more about processing underpayments of compensation, see SPRS Payroll Edits or contact the CAPPS help desk.

Sources

Texas Government Code, Section 659.006; Texas Administrative Code, Section 5.40.