LOP reversals occur when: an employee’s leave application is approved after the payroll month has closed, an attendance record was entered incorrectly and corrected later, or a public holiday was missed during payroll setup. In each case, Zoho Payroll allows the payroll admin to record a reversal in the subsequent pay run rather than reopening the closed period.
In the current pay run’s draft stage, navigate to the affected employee, select LOP Reversal, enter the number of days being reversed and reference the original pay period. Zoho Payroll calculates the reversal amount (days x daily rate from the original period) and adds it as a positive adjustment to the current payslip.
An LOP reversal increases gross salary for the current month. This may affect TDS computation (higher gross in the month of reversal), and potentially ESI eligibility if the reversal pushes gross above the Rs 21,000 threshold. Zoho Payroll recalculates all statutory figures for the reversal month automatically when the adjustment is added.
LOP Reversal in Zoho Payroll cancels a Loss of Pay deduction that was applied in a previous pay run. It is used when leave is approved retrospectively or attendance data is corrected after payroll has been finalised. The reversed amount is added as a positive adjustment in the current pay run.
Yes. An LOP reversal increases gross salary in the month it is processed, which may increase TDS for that month. Zoho Payroll recalculates the TDS computation when the reversal is added to the draft pay run, ensuring the deduction remains accurate for the full financial year.
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