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Wage Backpay

Experienced Cover User AlliKat82
32 Posts
Experienced Cover User
Australia

Wage Backpay

We have increased a payrate for one of our employees and we wish to backdate the increase.  What does that mean for the super payments?  Do I need to backdate them or add extra? Or do I just process it as we normally would?

 

Thanks in advance.

3 REPLIES
Ultimate Partner ronatbas
3,335 Posts
Ultimate Partner
Australia

Re: Wage Backpay

@AlliKat82

 

The super is only due when the back dated pay is paid. It is wrong to alter previous pays and you should not do it. There is a backpay as default in MYOB and it should be set to Salary type so that you can plug in a figure. The problem is never super it is always PAYG as MYOB taxes it as it was all earned in the one pay period. The ATO expect that you spread the amount over the whole year then pay the increase in tax. Set up an excel to show new pay per annum divide that by 12/26/52 to get a new gross and plug that figure into a dummy pay on MYOB to establish a PAYG figure. Multiply that by 52 then subtract the amount of PAYG paid to date. This will give a figure that you need to put into the PAYG field as a negative.

 

 

Ron B
BAS Group
03 95588477

info@basgroup.com.au
Making MYOB work for you
Experienced Cover User AlliKat82
32 Posts
Experienced Cover User
Australia

Re: Wage Backpay

Thanks ronatbas;

 

Only issue being that this particular employee doesn't work a certain amount of hours per week so there is no set way to figure out how much tax they should be paying.  With this being the case; would I just process it like a normal payment?

 

 

Ultimate Partner ronatbas
3,335 Posts
Ultimate Partner
Australia

Re: Wage Backpay

@AlliKat82

 

This doesn't really matter, both sides are using base 52 so the worked or not worked aren't relevant. I shall PM you some details.

Ron B
BAS Group
03 95588477

info@basgroup.com.au
Making MYOB work for you
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