What are the Implications/Consequence of Rolling Back Payroll?

Once payroll is finalized, employee payments for that month are fixed, and any further changes to payroll settings will not affect those payments. The updates will only apply to future months. However, when payroll is rolled back, any changes made after it was initially finalized will impact the rolled-back month.

Here are the consequences of rolling back payroll:

1. The salary structure or computation may change if there are updates to the structure or component formulas.

2. The TDS amount may vary if there are changes in declaration amounts or approval settings.

3. Employee exits will be reverted, and any overrides made earlier will be cleared.

4. Updates to employees’ financial information will take effect for the rolled-back payroll month.

5. Any exited employees’ full and final settlements will also be rolled back.

These are the possible outcomes of rolling back payroll for a month.