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Dolstar's avatar
2 years ago

Child support and electronic payments

Need help with the electronic payment of child support.

I have setup an employee with child support . When I do the pay run in MYOB essentials the gross tax nett and child support amounts are all correct on the payslip.

Within the payment details section of the employee I have set up 2 bank files first for child support and second for employee.

When the ABA file uploaded it seems to have paid child support twice. Once to the child support account as above and secondly reduced the employee nett amount by this same figure. So goodness only know where this other amount went.

 

Eg Gross 1000.00 tax 100.00 child support 150.00 nett payment to employee 750.00

therefore what has occured child support account got 150.00 and employee got 600.00 not sure wher the other 150 went

 

what am I doing wrong and how do i set it all up., resolve my issue

 

Kind regards

 

3 Replies

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  • LRBooks61's avatar
    LRBooks61
    Ultimate Cover User

    Hi

     

    Child support is a deduction from the pay and should be allocated to a liability account and paid to the child support agency

     

    What I think you have done which has created the problem is set up the 2 bank accounts in the employee card

     

    so the 750 is being paid as $600 and $150

     

    the deduction will be sitting in the general ledger account associated with the deduction pay item

     

    So if the $150 has gone to child support then you need to pay your employee the $150 

     

    When you do this allocate the payment to the child support liability account.

    this will show that the liability has been paid but not upset your wages. 


    so when you do pay the child support in the future the payment is allocated to the liability account - this ensures that you can reconcile and ensure the correct payment has been made

     

    This is assuming that you are paying child support to a government agency and not direct to the other parent

     

    hope this helps

     

    Lisa

    • adzfern's avatar
      adzfern
      User

      Hi Lisa,  I am also setting up Child Support payments.  I am just wondering how to you actually pay this deduction once a payrun has been processed.  I can't seem to figure this out and would rather upload an aba file with payroll if possible instead of internet banking - bpay etc...

       

      ThanksFern

       

      • LRBooks61's avatar
        LRBooks61
        Ultimate Cover User

        Hi Fern

         

        check the paperwork from child support services and see if they provide a bank account you can deposit to 

         

        I haven't done this for some time now but always had to use BPAY 

         

        Lisa