U18 year old, payroll tax collected incorrectly. how to fix?

AinsleyCMP

I have realised and error, an old employee was deduced a small amount each week in their payroll, although being under 18, total amount of $43.  As the employee was STP finalised and finished employment in 2025, what do i do from here?  Refund their money, and how to process to ATO and in MYOB?

Earl_HD

Hi @AinsleyCMP,

Great pick‑up on this, and you’re right to fix it now rather than let it sit in the ATO records. For an under‑18 who had a small amount of PAYG tax incorrectly withheld (and is already STP‑finalised and finished), you normally do two things:

Refund the tax to the employee

• Pay the $43 back to them outside payroll (e.g. a bank transfer) and note it as a refund of over‑withheld PAYG.

Correct the payroll/STP figures in MYOB

• In your payroll file, create a one‑off adjustment pay for that employee, dated in the 2024–25 year (for example 30/06/2025).
• Leave all earnings at $0, and enter –$43 in PAYG Withholding so their YTD tax withheld reduces by $43.
• Record that pay and send it via STP, so the ATO’s YTD totals are updated.
• Then go to the Payroll Reporting Centre > EOFY Finalisation (2024–25), undo/remove the finalisation for that employee, check the YTD figures now match what you expect, and re‑finalise them.

I hope this helps!

Regards,
Earl