Superannuation calculated on wrong wage category

[AdditionalBook]

Hi

A new client has been incorrectly calculating and paying superannuation on two employee's overtime for the last 12 months. 

After identifying this, they contacted the relevant superfunds and have successfully obtained a refund on the overpaid amounts.  

Now they have received the two refunds, what is the best way to enter this back into MYOB?

I was thinking I would need to do a zero payroll for the applicable period and in the Pay Employee screen under the Employer Expenses, enter a negative amount next to Superannuation expense field which will automatically put a positive value in Superannuation Payable liability field.

Is that the appropriate/correct way to do this?  And is this an STP reportable transaction (I think it is but I'm getting pressure to not a they're worried it will trigger some sort of audit from the ATO).

Thank you

[Princess_R · Accepted solution]

Hi @AdditionalBook,

Thank you for your post.

Your proposed approach of using zero payroll for the applicable period and entering a negative amount in the superannuation expense field under Employer Expenses is a reasonable way to adjust for the overpaid superannuation. However, it's always advisable to check with the ATO or consult with an accountant to ensure compliance with current regulations.

I'll provide you with this Help article: Checking and Adjusting Superannuation, which has detailed information on handling overpaid superannuation payments.

Feel free to reach out if you have any further questions or if there's anything else I can assist you with.

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

Cheers,

Princess

[AdditionalBook]

Hi @Princess_R 

Thank you for your message.

I wasn't feeling comfortable doing the zero payroll as I felt it wouldn't tell the full story (if you know what I mean).  I had a chat with their accountant and agreed to reverse each payroll that was incorrectly calculated and reprocess it with the correct payroll categories. 

It was a slow process but it was worthwhile as it also re-affirmed the overpayment calculated to reconcile with the refund received.

Thank you for your input.

[Princess_R]

Hi @AdditionalBook,

Thank you for your response, and I regret the delay in my response.

I appreciate you sharing your experience. It's great to hear that you took the time to consult with the accountant and decided to reverse and reprocess the incorrectly calculated payrolls. This approach, while time-consuming, is indeed a thorough way to ensure accuracy and transparency in your payroll records.

Please feel free to start a new post again if you need help in the future.

Cheers,

Princess