What action is taken when a pay discrepancy is identified during payroll processing?

• A. Ignore the discrepancy and proceed with processing.
• B. Notify the member to review their LES and nothing else.
• C. Re-run payroll in the next cycle only.
• D. Investigate, document findings, and submit a correction or adjustment as appropriate.

Answer: (D)

When a pay discrepancy is identified during payroll processing, the action taken should be to investigate, document findings, and submit a correction or adjustment as appropriate. This approach ensures the payment is accurate and compliant with payroll controls and audit requirements. Investigating involves reviewing timekeeping, entitlements, deductions, and related records to determine the cause of the discrepancy. Documenting the findings creates an auditable trail that explains what was found, why the issue occurred, and what decision was made. Submitting a correction or adjustment then fixes the payment and updates the LES and payroll records, preventing the same error from recurring in future cycles. Bypassing the issue or delaying resolution, such as ignoring it or only notifying the member or waiting until the next cycle to re-run payroll, risks continuing overpayments or underpayments and increases compliance and audit risk.