Overpay Staff Wage

Joanne76
2 Posts
Cover User

Overpay Staff Wage

Morning all.

 

We have accidently overpaid a staff member $250 over two weeks, he has agreed to pay this back @ $50 a week from his wages.  obviously he has paid tax and super on the overpayment.

 

Im really not keen to delete the payrun as it affects too many staff and i dont want to mess with it.  is there another way i can correct this?

 

Thanks all

1 REPLY
MYOB Moderator Steven_M
18,807 Posts
MYOB Moderator
New Zealand

Re: Overpay Staff Wage

Hi @Joanne76

 

I would be setting up a new wage* category and setting that up to deduct the amount from the employee. Do this do the following steps:

 

  1. Payroll>>Payroll categories>>>Wages>>New
  2. Give the category a name and set the type of wages. If you want it to be hourly, I would set the hourly rate to be Fixed Hourly Rate of 50.
  3. You will also need to into the Employee button and tick the relevant employee.
  4. As tax is not being calculated on it, as it was previously, you will need to select the Exempt button and tick the PAYG category

  5. As superannuation has already been calculated on it you would go into the Payroll>>Payroll Category>>Superannuation Tab and select the required category to select the Exempt button to exempt that category from the superannuation.

In terms of processing the pays you would need to manually enter the negative value against that employee i.e. go to Payroll>>Process Payroll and select the employee>>Select to bring up the Pay Employee and enter a negative value against that newly created payroll category. If it was set up to be an hourly category it would be a negative one to give you a negative value.

Alternatively you could go into the employee's card>>Payroll Details tab>>Standard Pay on the left hand side and enter it there. This will be included when processing the employee's pays. Do make sure you remove it once the value has been paid back.

 

This to consider:

  • as PAYG is calculated on a per pay basis it might make the employee fall under a threshold and thus calculate the incorrect PAYG for the year of the employee (would be correct according to the weekly tax tables).
  • as superannuation is calculated on a month by month basis, reducing the amount of gross wages on a pay may make the employee under the threshold and thus superannuation may not be calculated for that month.

*The reason why this is a wage category and not a deduction category as you have overpaid the employee through a wage category so doing it as a wage category you can get the correct Gross Payments come year of the year.

 

Do let us know how you get on and if you require further assistance.


Kind Regards,
Steven
MYOB Client Support
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