---
title: "Create payroll adjustments"
slug: "create-payroll-adjustments"
updated: 2026-10-15T01:04:44Z
published: 2026-10-15T01:04:44Z
canonical: "help.servicetitan.com/create-payroll-adjustments"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.servicetitan.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Create payroll adjustments

## Overview

Use payroll adjustments to make positive and negative corrections to an employee's payroll. For example, if a technician should have received a pay bump on a specialized job, you can add a payroll adjustment to the invoice. You can also use payroll adjustments to account for labor activities outside of ServiceTitan that you want to include when calculating Job Costing.

[KB - Create Payroll Adjustments Video](https://fast.wistia.net/embed/iframe/n8quwm82b3?web_component=true&seo=true&videoFoam=false)

---

### 

#### Who uses this feature

- Administrators and accountants

## Things to know

- Commission base payroll adjustments are used to increase an individual technician's commission while keeping the total commission amount for the job the same. If Bob receives a $50 commission base payroll adjustment, there's $50 less available for other technicians receiving Splits on the invoice.
- To make adjustments for hourly technicians, you can [edit technician timesheets](/construction/docs/edit-technician-timesheets).
- To view payroll adjustments on invoices and job records, office employees must have the *View Payroll Adjustments* permission enabled. To enable this permission, see [Set permissions for an individual employee](/construction/docs/set-permissions-for-an-individual-employee-or-technician-1).

## Add a payroll adjustment to an invoice

1. [Search for the invoice](/construction/docs/use-search-in-servicetitan) you want to add the adjustment to and click it to open it.
2. Click **Add a payroll adjustment**. ![Menu options for updating invoice details and managing tasks in a software interface.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/create-payroll-adjustments-image-c4mgh559.png?sv=2026-02-06&spr=https&st=2026-10-31T01%3A46%3A29Z&se=2026-10-31T02%3A46%3A29Z&sr=c&sp=r&sig=1o1uzm45hJ5I0VBy6rmGirK7kS06nkFl6RZc%2Fm8DD94%3D)
3. Enter the payroll adjustment information:
  1. **Type:** Select one of the following: ![Form for employee adjustments with options for type, rate, quantity, and amount.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/create-payroll-adjustments-image-xu9i4fk2.png?sv=2026-02-06&spr=https&st=2026-10-31T01%3A46%3A29Z&se=2026-10-31T02%3A46%3A29Z&sr=c&sp=r&sig=1o1uzm45hJ5I0VBy6rmGirK7kS06nkFl6RZc%2Fm8DD94%3D)
    1. **Direct:** Adjustment is directly earned by the employee

> [!NOTE]
> **Note:** This is the most common type of payroll adjustment. If you use [Configurable Payroll](/construction/docs/configurable-payroll-home), this is the only type you can use.
    2. **Commission Base:** Based on the technician's commission rate. *Example:* If the adjustment is $200 and the technician's commission rate is 10%, the technician earns $20.

> [!NOTE]
> **Note:** This reduces the commissionable base for other techs on the invoice.
    3. **Labor:** Used for contractors and laborers. Counts as a cost on the invoice, reducing the commissionable base.
    4. **Advance:** When technician is paid before the job is added to payroll. Amount is deducted from the technician's gross pay when the job is included in payroll reports.
    5. **Sold Advance:** Used when the technician gets *Sold by* credit before the job is added to payroll. The sold by percentage is applied to the adjustment amount. The total is deducted from the technician's gross pay when the job is included in payroll reports.
  2. **Code:** [Earning code](/construction/docs/earnings-codes-home) associated with the adjustment invoice.

> [!NOTE]
> **Note:** This field appears only if your account is configured to use earning codes.
  3. **Posted On:** Date you want the payroll adjustment to show as posted

> [!NOTE]
> **Note:** Use a future date that hasn't already been processed in payroll. Otherwise, the adjustment will not be recognized.
  4. **Rate:** Base amount of the payroll adjustment. To deduct from pay, use a negative number. ![Form fields displaying rate, quantity, and amount with negative values indicated.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/create-payroll-adjustments-image-rpx1qu3t.png?sv=2026-02-06&spr=https&st=2026-10-31T01%3A46%3A29Z&se=2026-10-31T02%3A46%3A29Z&sr=c&sp=r&sig=1o1uzm45hJ5I0VBy6rmGirK7kS06nkFl6RZc%2Fm8DD94%3D)

> [!NOTE]
> **Note:** For commission base payroll adjustments, this amount is multiplied by the technician split.
  5. **Quantity:** Number used to multiply the *Rate* by.

> [!NOTE]
> **Note:** Enter 1 for standard payroll workflows.
  6. **Amount:** Automatically calculated as *Rate* x *Quantity*.

> [!NOTE]
> **Note:** You can view the net total of a commission base payroll adjustment in the [Payroll (Detail) Report](/construction/docs/payroll-detail-report-primary-payroll-settings)![Payroll adjustments showing invoice details and net amount of $25.00 for InnovateCorp Solutions.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/create-payroll-adjustments-image-39gwdnb9.png?sv=2026-02-06&spr=https&st=2026-10-31T01%3A46%3A29Z&se=2026-10-31T02%3A46%3A29Z&sr=c&sp=r&sig=1o1uzm45hJ5I0VBy6rmGirK7kS06nkFl6RZc%2Fm8DD94%3D)
  7. **Memo:** Details or notes about the adjustment
4. When you're finished, click **Save**. ![Form for adding payroll adjustment details including employee, amount, and memo.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/create-payroll-adjustments-image-pc5u6kyd.png?sv=2026-02-06&spr=https&st=2026-10-31T01%3A46%3A29Z&se=2026-10-31T02%3A46%3A29Z&sr=c&sp=r&sig=1o1uzm45hJ5I0VBy6rmGirK7kS06nkFl6RZc%2Fm8DD94%3D)The saved adjustment appears in the *Payroll Adjustments* section of the invoice. ![Payroll adjustments, showing commission details and total amount of $125.00.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/create-payroll-adjustments-image-qzxrdcym.png?sv=2026-02-06&spr=https&st=2026-10-31T01%3A46%3A29Z&se=2026-10-31T02%3A46%3A29Z&sr=c&sp=r&sig=1o1uzm45hJ5I0VBy6rmGirK7kS06nkFl6RZc%2Fm8DD94%3D)

## Add a payroll adjustment directly to an employee

You can make payroll adjustments that are not associated with a job or invoice. These adjustments are *not* used in job costing.

To make a direct payroll adjustment:

1. Go to the navigation bar and click **Reports**.
2. Click the **Payroll (Detail)** report to open it.

> [!TIP]
> **Tip:** In the search field, enter a few letters of the report title for quick access.

![Search results for Payroll options with detailed report descriptions and selection interface.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/create-payroll-adjustments-image-90j84ozs.png?sv=2026-02-06&spr=https&st=2026-10-31T01%3A46%3A29Z&se=2026-10-31T02%3A46%3A29Z&sr=c&sp=r&sig=1o1uzm45hJ5I0VBy6rmGirK7kS06nkFl6RZc%2Fm8DD94%3D)
3. Use the **Technician**, **From**, and **To** dropdowns to set filters for the technician you want to add an adjustment to.
4. Click **Run**. ![Payroll report interface showing technician selection and date range for report generation.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/create-payroll-adjustments-image-yd2s65n5.png?sv=2026-02-06&spr=https&st=2026-10-31T01%3A46%3A29Z&se=2026-10-31T02%3A46%3A29Z&sr=c&sp=r&sig=1o1uzm45hJ5I0VBy6rmGirK7kS06nkFl6RZc%2Fm8DD94%3D)
5. In the *Direct Payroll Adjustments* section, click **Add Payroll Adjustment**. ![User interface for adding payroll adjustments with no data available displayed.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/create-payroll-adjustments-image-sgud2ilb.png?sv=2026-02-06&spr=https&st=2026-10-31T01%3A46%3A29Z&se=2026-10-31T02%3A46%3A29Z&sr=c&sp=r&sig=1o1uzm45hJ5I0VBy6rmGirK7kS06nkFl6RZc%2Fm8DD94%3D)The *New Payment Adjustment* pop-up opens.
6. Add details to the fields:
  1. **Posted On:** Date you want the payroll adjustment to show as posted

> [!NOTE]
> **Note:** Use a future date that hasn't already been processed in payroll. Otherwise, the adjustment will not be recognized.
  2. **Rate:** Base amount of the payroll adjustment

> [!TIP]
> **Tip:** To deduct from pay, enter a negative number.
  3. **Quantity:** Number used to multiply the *Rate* by.

> [!NOTE]
> **Note:** Enter 1 for standard payroll workflows.
  4. **Memo:** Details or notes about the adjustment
  5. **Type**: Select one of the following:
    1. **Direct:** Adjustment is directly earned by the employee

> [!NOTE]
> **Note:** This is the most common type of payroll adjustment. If you use Configurable Payroll, this is the only type you can use.
      1. **Commission Base:** Based on the technician's commission rate. *Example:* If the adjustment is $200 and the technician's commission rate is 10%, the technician earns $20.

> [!NOTE]
> **Note:** This reduces the commissionable base for other techs on the invoice.
      2. **Labor:** Used for contractors and laborers. Counts as a cost on the invoice, reducing the commissionable base.
      3. **Advance:** When technician is paid before the job is added to payroll. Amount is deducted from the technician's gross pay when the job is included in payroll reports.
      4. **Sold Advance:** Used when the technician gets *Sold by* credit before the job is added to payroll. The sold by percentage is applied to the adjustment amount. The total is deducted from the technician's gross pay when the job is included in payroll reports.
  6. **Code:** [Earning code](/construction/docs/earnings-codes-home) associated with the adjustment invoice.

> [!NOTE]
> **Note:** This field appears only if your account is configured to use earning codes.
7. When you're finished, click **Save**. ![Form for payroll adjustment including technician, rate, quantity, and memo details.](https://cdn.document360.io/961862ab-d0f2-4d91-bb62-a62ee8184eff/Images/Documentation/create-payroll-adjustments-image-k9jk764t.png?sv=2026-02-06&spr=https&st=2026-10-31T01%3A46%3A29Z&se=2026-10-31T02%3A46%3A29Z&sr=c&sp=r&sig=1o1uzm45hJ5I0VBy6rmGirK7kS06nkFl6RZc%2Fm8DD94%3D)

## Want to learn more?

- See [Payroll (Detail) Report: Primary payroll settings](/construction/docs/payroll-detail-report-primary-payroll-settings)

The calculation of actual costs (labor, materials, overhead) against revenue for each job to determine true profitability.

**What it does:** Shows which job types, technicians, or BUs are truly profitable after accounting for all costs, not just top-line revenue.

**Also called:** Job profitability, Cost tracking

**Tags:** Core

[See the full glossary →](https://help.servicetitan.com/docs/glossary-overview)

Split determines how much credit each technician is getting for the job. For example: If two technicians perform work on a job, the split could be an even 50%-50%, or it could be 75%-25% if the first technician did a bulk of the work. By default 100% of the technician split will go to the first technician assigned to the job.

[Learn more →](https://help.servicetitan.com/docs/servicetitan-glossary) · [See the full glossary →](https://help.servicetitan.com/docs/glossary-overview)