Payroll Question
Our P&L for payroll has salaries broken down by position.
Position A
Position B
Position C
Payroll was run and paid for Position B. (This was done by previous accountant.)
My supervisor stated that payroll should have been allocated between Position B and Position C.
(I’m still working on developing understanding for the rationalization. Assuming that payroll was in fact in error listing the wrong position title on employee documents, but the rate of pay was not effected.
What would be the best way to rectify this problem.
My supervisor thinks that just by making a back end adjusting journal entry would be a quick fix.
I disagree with this route and I think we would have to go through and restate payroll for the effected historical periods, so that our company records reconcile to the employee records and provide the employee with updated records.
What are your thoughts?
