After processing the payroll, I noticed an error in the calculated gross pay for one of the employees. It appears that MYOB automatically changed the employee's hourly rate while retaining the number of hours I entered and the employee's usual pay amount per pay. As a result, the payroll was calculated incorrectly and overpaid the employee.
Hi angel08,
Thanks for providing a detailed response.. When this happens, it’s usually related to how the Personal Leave category or the Base Hourly category is set up, as those settings can affect how the pay is calculated. That said, to take a closer look at what’s happening, it would be best to reach out to our team so they can review the setup in more detail and confirm why the pay is calculating this way. You can reach them on Live Chat via our virtual assistant, MOCA or by submitting a support case via MyAccount.
Regards,
Earl
Princess_R Hi Princess. In the employee's Payroll Details, the actual hourly rate is still showing correctly and has not been changed. However, on the employee's payslip, a higher hourly rate was applied.
This is what occurred:
For example, the employee's actual hourly rate is $30.00 per hour and they normally work 30 ordinary hours per week. In the pay run, I adjusted the hours to 18 hours of Base Hourly and 12 hours of Personal Leave.
Based on the employee's hourly rate, the gross pay should have been calculated as follows:
However, when MYOB processed the pay, it showed in the payslip:
It appears that MYOB retained the employee's usual gross pay of $900.00 instead of recalculating it based on the adjusted 18 hours, resulting in an overpayment.
Hi angel08,
Thanks for checking in. An unexpected change to an hourly rate would definitely be concerning.
The first thing to do is check the employee’s Standard Pay and Pay History details to confirm which rate is showing now and whether anything may have changed before the pay was processed. You can also have a look at this link for more info on how that works. To fix the overpayment, the steps will depend on whether the employee has already been paid. You can follow the steps in this link, which covers what to do in each situation.
Cheers,
Princess
