Payroll STP adjustment / salary sacrifice

Question

Hi everyone,

I'm after some advice on how to handle a payroll adjustment.

We recently processed a termination pay for an employee who retired, which included long service leave (LSL). The breakdown was:

LSL: $48,590.55

Tax withheld: $15,524

Salary sacrifice super: $30,000

Net pay: $3,066.55

The employee has now requested that the $30K salary sacrifice super be paid to him as cash instead. I already processed the payroll and lodged the STP 2 weeks ago. We haven't processed the super payment yet, so that part is still within our control.

i understand I can reverse and reprocess the pay without the salary sacrifice, but my question is:

If I reverse this pay, how will it affect the other employee pays that were processed in the same pay run on that day? Will reversing just this one employee's pay cause any issues with the rest of the payroll? is there a better way to adjust this?

Thanks in advance!

luci2727 · Answer

Thanks for your help ;)

Genreve_S · Answer

Hi @luci2727,

I can see how thinking a reversal affects other employees within the pay run can be worrying. The good thing is you can fix this just for that one employee, reversing their pay only creates a matching negative for that employee and won’t change any of the other pays in that run.

Then just re-do their termination pay without the $30k salary sacrifice so it’s paid as normal wages instead, and resend through STP so the ATO gets the updated YTD.

Steps are here if you want the clicks:
Changing a recorded pay (AccountRight) –  https://help.myob.com/wiki/display/ar/Changing+a+recorded+pay

Regards,
Genreve