Reversals in Electronic Payment Window & overpayment of wages

Hi Tracy,

Thank you. Much appreciated.

I will follow your steps and hopefully all is fixed.

Hi hvc1 

Thanks for your post. If an employee is overpaid you would typically leave the original pay transaction as is so that you can match what was actually paid with the pay transaction. The adjustment for the overpayment would be processed as a separate pay run or included in the next normal pay run. Which method you choose depends on how the employee repays the overpayment. If they deposit the amount into your bank account you would process a separate negative pay. If it is deducted from subsequent pays you would include it in the normal pay run.

If your employee is not repaying the overpaid amount you would need to reverse the second positive pay and record a positive pay to clear out the reversal. This is because the employee has actually received the higher amount and this is what needs to be reported in STP. You can do a $0 pay and move the salary sacrifice amount from salary sacrifice to a wage payroll category so the amount is reflected as income.

If the employee has/is repaying the overpayment let me know how and what transactions you've recorded and I'll be happy to assist further.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Hi Tracey, 

Thanks so much for replying to my question.

The super & payg has already been paid for September for the correct amount (the amended  pays) - not the overpayments that I reversed.

Would it be best to now to deduct the overpayment from the next pay?

I have not recorded any further transactions as I could not work out how account for the salary sacrifice.  There are three pays each with $450 salary sacrifice allocated incorrectly.

Could you please show me an example?

Thank you.

Hi Tracey,

I think I have worked out how to adjust the next pay to fix overpayment but would like to know which sequence to process reversals.

Should I reverse the second pay transaction and then the reversed pay,  leaving the original pay?

Will this fix the transactions sitting in the Prepare Electronics Payments window or will I have to reverse these transactions too?

How will the super for September be affected seeing it has already been paid via Pay Super

I would really appreciate if you could get back to me shortly. Thank you.

Hi Tracey,

This is a problem further to my previous post regarding reversing and re-entering pays due to entering salary salary sacrifice as a postive amount instead of negative figure.

The pays have been amended and I have cleared the electronic payments as per your instructions.  The 3 pays were in the months of September & October.  This all worked well and I thought everything was ok until it came time to pay super.

To fix  the Salary Sacrifice amount, I adjusted the  amount on the next pay (dated 1/12/22) . 3 x $450 was changed to -$3150  (6 x $450 = $2700 + $450 for the current pay). This adjustment won't be included November's super payement but the reversals & re entered pays will be.

The Super had already been paid for September & October via Pay Super before I did the reversals and re-entred.  

How do I ensure the correct amount of super is paid to the employees's super fund?  If I filter the date range to Include September through to November, will the super payable be automatically adjusted?

I hope you can help me again.  

Thank you

Hi hvc1 

Apologies for the delay in getting back to you. How did you go with this? If you still need assistance can you send me a screenshot of the Pay super window by private message.