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Prior Period Adjustment

What is Prior Period Adjustment?

A prior period adjustment (PPA) is a revision to an employee's previous payroll (time, salary, or classification).

Although workers and employers make every effort to report and measure payroll correctly, mistakes take place. And, in many cases, these mistakes are not found until after timesheets have been submitted. Then after the PPA role starts, it's played by the employee and employer together to rectify the wrong done.