Forum Discussion

OHSGirl's avatar
OHSGirl
Cover User
3 months ago

Child support deduction mistakenly entered as positive

From a closed thread on this subject:
I inadvertently made a child support deduction a positive number instead of negative. 

 

MYOB response was to make a double-deducted amount the next pay run to correct it.  

 

Payment had correctly been made to child support authority, in the first payrun, but as there was no "pay liability amount" available in the bank rec, a Spend Money transaction was created, with relevant Child Support Agency as payee.

 

We have double deducted the amount in a subsequent pay run (in next BAS period) but I am now left with a pay liability amount of twice the amount of the actual payment to Child Support this payrun..

 

So questions are:

 

1. Does a "spend Money" transaction to Child Support show up on PAYG year end and ATO as a paid payroll liability?

2. Do I delete the previously reconciled Spend Money transaction?  If so, how to I match two paid amounts to one  transaction in the bank feed?    Cannot do the usual trick of matching two payments into one transaction by simply reconciling all unreconciled on the bank feeds as there are hangover transactions from earlier that we also have to resolve. 

3 Replies

  • Isaiah_C's avatar
    Isaiah_C
    MYOB Moderator

    Hi OHSgirl,

     

    Thank you for your patience. If you process an incorrect pay, we highly recommend reversing the transaction, please see Fixing a pay (myob.com).

     

     Spend money transactions will not be reported through STP. The categories that are being reported to ATO are wages, deductions, taxes that are assigned to an ATO reporting category. You may also try to delete the spend money transaction which may require you to consult with your accountant. Deleting a transaction (myob.com) has detailed information to assist you with this,

     

     

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

     

    Please feel free to post again.

     

    Kind regards,

    Sai

    • OHSGirl's avatar
      OHSGirl
      Cover User

      The super on the faulty pay run has already been paid, and MYOB fix a pay link states:

      A pay can only be deleted or reversed if...

      So if cannot reverse the pay run (per above) what are the other options?

       

      Should I just *A* run an additional pay run with the deduction only, (and a base pay amount the same) backdated to the date that the child support deduction was remitted?

       

      So I could then delete the spend money transaction currently in the bank rec then match the *A* transaction amount above with the actual payment made from bank to child services?

  • Hi OHSgirl,

     

    Thanks for your response.

     

    If you've accidentally processed a pay run with an incorrect child support deduction (for example, entering a positive number instead of a negative one), reversing the payment might not be feasible since it's already been made. In this scenario, your best course of action would be to adjust in the upcoming pay run or process a separate pay run specifically for the child support deduction.

     

    Regarding the spend-money transactions you've created, it's not the recommended approach. Let's illustrate with an example: If you mistakenly processed a +$100 child support deduction and then included a double deduction of -$200 in the subsequent pay run, the positive $100 and the -$100 will offset each other, leaving the remaining -$100 as the correct child support deduction.

     

    The most advisable solution would be to reverse the double deduction pay run, delete the spend-money transactions, and then reprocess an adjustment pay. This method ensures a balanced approach that aligns with the actual payment records.

     

    Feel free to post again if you need further assistance.

     

    If my response has answered your inquiry, please click "Accept as Solution" to help other users find this information.

     

     

    Cheers,

    Princess