Payroll Adjustment Issue – PAYG Overstated and Leave Not Reclassified
Dear MYOB Support Team,
I would like to seek your assistance regarding a payroll adjustment issue.
All adjustments were processed via Payroll > Pay runs > Create pay run.
Firstly, I identified that in a pay run processed in October 2025, an amount of $468 was incorrectly classified under “Personal Leave Taken” instead of “Salary and Wages (Gross payments)”.
To correct this, I created an adjustment pay run via “Create pay run” to reclassify the amount. However, after recording this adjustment, I found that the Payroll Summary increased instead of remaining unchanged, even though this was intended to be a reclassification only and should not have impacted the total payroll.
I then created another pay run via “Create pay run” to reverse the previous adjustment.
After completing these steps, the current situation is as follows:
1.The Payroll Summary total has returned to its original level, indicating that the adjustment and reversal have offset each other in terms of gross amounts.
2.However, PAYG withholding has increased by $1,872 (i.e. $936 × 2), suggesting that the tax has been recalculated twice and not properly offset.
3.The amount of $468 remains recorded under “Personal Leave Taken” and has not been successfully reclassified to Gross payments.
In addition, both the adjustment and reversal pay runs have already been reported to the ATO via STP.
For your reference, the employee was terminated in January 2026. This process was purely to correct the payroll classification, and there has been no overpayment or underpayment made to the employee.
Could you please advise how to correct the overstated PAYG amount of $1,872 and properly reclassify the $468 from Personal Leave Taken to Gross payments?
Thank you for your assistance.
