Incorrect historical ESCT calculation

Question

I use MYOB Payroll and have discovered one employee's ESCT contribution has been calculated at the wrong rate for a year. It should have been 17.5% but was calculating at 30%. The rate was set at calculated and the employee had been employed for over a year. I have logged this as an issue with MYOB as her set up was the same as every other employee on the payroll and their ESCT calculations are correct.

I now need to correct the 'over deduction' of ESCT for 52 weeks which relate to last financial year. It is not practical to re-open 12 pay periods and reverse and re-run 52 pays. Is there a way I can manually calculate the correction and process it in payroll?

jenniek · Answer

Hi janet28&nbsp;I agree with Eric3 - this will be sorted by IRD with the employee - as the money has been returned to the IRD in PAYE. No need for you to do anything - just correct it for future. Mind you I did read somewhere that the IRD would chase those who underpaid, but not those who overpaid.

eric3 · Answer

Wouldn't this be something that the IRD would do?&nbsp; The individual should have got a tax refund.&nbsp; I would just contact IRD and notify them of the mistake.

leneth_a · Answer

Hi janet28,&nbsp;&nbsp;Thanks for your post and welcome here to the Community Forum. We apologize for the delay in responding and thank you for letting us know about your experience. We apologize for the inconvenience this has caused you and we appreciate your patience and understanding.&nbsp;&nbsp;I would also like to thank Eric3 and jenniek for sharing helpful information with the Community Forum. Our team is committed to providing the best experience for all our customers, and your contributions help us do just that. The information they have shared is correct that you would need to reach out to IRD to fix this for you and you may correct it in the future. &nbsp;&nbsp;
Please don't hesitate to post again if you need help in the future.&nbsp;&nbsp;If my response has answered your enquiry, please click "Accept as Solution" to assist other users find this information.&nbsp;&nbsp;Cheers,&nbsp;Leneth

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Incorrect historical ESCT calculation

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