Correcting payroll when wrong tax rate was used

WMEadmin

I 

I processed 2 x pays for a new employee but mistakenly had not checked the Australian resident box. He was therefore taxed at a higher rate.

 

Can anyone tell me the best way to rectify this to keep records correct. I can’t wrap my head around the best way to do it.

LRBooks61

hi

i would suggest that the best way to correct the PAYG a issue is to fix in the next payrun

 

to do this determine the amount of tax that should have been paid and the tax that was paid

 

e.g. if the tax should be $50 but was calculated as $65 then the overpayment of PAYG aid $15

so for the two pays you need to reduce the PAYG by $30 in the next payrun

 

which means that , in this example the PAYG tax in this payrun should be $20 instead of the calculated $50

You will need to overwrite the tax amount so it is $20 make sure that the amount is saved

 

You will have corrected the problem and all reporting to ATO will be correct

 

hope that helps

 

Lisa