Reversing WorkCover Accrual

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Bernice70
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Reversing WorkCover Accrual

Hi,

 

I have accrued Workcover for July to October 20 via a debit to the P&L (6xxxxx series) and a credit to a Payable account each month. However, upon further analysis this month, we determined that as we had already booked a full lump sum for the financial year to the P&L (6xxxx series) for Workcover Insurance Expense when the invoice was received in July 20 (with the amount covering more than what is anticipated for the financial year), no further monthly accrual is required.  

 

My question is, how do I reverse the Workcover Accrual in MYOB Payroll module for July to October 20? I'm not sure if I need to do anything for the prior financial years either to reverse those years' accruals.

The Workcover Accruals do not impact the employees' historical Net Pay as it is just an accrual entry and no actual payment goes to the employee for workcover as it is just an accrual and no one is actually claiming Workers Comp in the company at the moment. Would I need to go through the "Process Payroll' function to adjust this?

 

I am also guessing that going forwards I would need to make an amendment in the Payroll Categories/Expenses tab and change the percentage for Workcover Calculation Basis to 0% so that no further Workcover is accrued ?

 

Much thanks in advance for any help!

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Tracey_H
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Re: Reversing WorkCover Accrual

Hi @Bernice70 

 

Thanks for your post. To stop workcover accruing you can exempt your employees by opening the payroll category>>click on Employee and untick all employees.

 

As workcover accrual is an expense of the business and does not form part of an employee's income I would not expect that you would need to make any adjustments to previous pays. However, if you are unsure I would recommend speaking to your accountant. 

 

Please let me know if you need further help.

 

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

Cheers,
Tracey
Previously @bungy15

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Bernice70
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Re: Reversing WorkCover Accrual

Thank you Tracey

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