How to handle the issue "Failed to save data. This policy was used in a previous pay run, therefore cannot be edited" if you want to modify settings of payroll policy when calculating salary for employees？
The reason for this issue is that you have already paid run record(s) under this payroll policy in the system, so you cannot directly modify it. Regarding to this problem, there are two solutions:
Delete pay run record(s) and then modify the payroll policy
Create a new payroll policy and disable the previous one
Solution 1: Delete pay run record(s) and then modify the payroll policy
Solution 1 applies to wrong settings of payroll policy. If pay period or calculation method is wrong, then the results generated from the system are also wrong. In this case, you can delete existing pay run record before pay run.
If the pay run is closed, paid, or approved, then you need to 「Cancel close」> 「Cancel Payment」> 「Unapproving」to delete pay run records.
You're able to modify payroll policy after deleting all pay run records
Solution 2: Create a new payroll policy and disable the previous one
Solution 2 applies to the situation where pay period or calculation method need to be changed, and the previous payroll policy settings are correct and you need to keep previous pay run records.
Step 1
Create a new payroll policy and disable the previous one
Step 2
You need to modify payroll policy for every employee in People. If you have a great amount of employees to modify, then you can utilize Importing an Excel File to update employees' payroll policy in bulk.
Now, you have successfully updated employees' payroll policy following by the above steps. You can select the new payroll policy when calculating payroll in the future.