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We accrue our workers comp expenses as part of payroll each week and have recently had an increase to our premium.
I have updated the premium % (nothing else has changed) as shown below to 3.4% and the calculations are now incorrect for ALL employees.
What is even more strange is that the percentage actually being calculated is different for most employees so MYOB isn't just calculating say 3.55% for everyone, sometimes its 3.62% etc.
I've checked and there are no categories ticked as exempt and it was calculating perfectly well before I changed the percentage so I'm at a loss as to why its now doing this.
Can you post a screen shot of one or two of the wages incorrectly calculating?
Here are two of them (every single one is incorrect but not by the same amount/percentage) - sorry, the second example is over two screen shots as there are quite a lot of categories in some of our payroll. The examples I've given are a salary set up and a wages set up where hours etc change each week.
Sorry, this has got me baffled.
Only thing I can suggest is that if you haven't already, upgrade to version 2019.2 and see if for some reason the problem goes and everything calculates correctly again.
You and me both!
Baffled & frustrated - surely people change % of expenses from time to time for various reasons, it shouldn't just start calculating however it wants!
I run two different company files & the same thing has happened on both of them.
I've got no idea which version we're on - I just always click the update/upgrade whenever we receive the link so imagine we're on the latest.
Is this something I need to escalate to MYOB to investigate somehow (I never quite follow how their support works)?
May - last edited May
Based on what I can see the calculation is actually working correctly from a software point of view.
What expense payroll categories will do is look at the full calendar month's worth of pays to determine the value on the pay. This does mean that if a rate is changed or something is adjusted on the category you may end up with a higher value than you would expect as its back-calculating for the calendar month.
For example, if you paid $100 and had the calculation percentage set to be 1% the expense value would be $1. If you then updated the expense calculation rate to be 5% and processed another pay for the employee within the same month ($100 pay again) the expense on that pay would be $9. This is calculated as ((2 x 100) x 5%) - 1 or in other words ((what is being paid for the month) multiplied by the current expense calculation) minus what has already been deducted for the month.
What I would recommend doing to everyone that is finding that their expense is not calculating as they would expect is:
As to a resolution, it does come down to whether or not that expense category should be calculated on a calendar basis. This I can't answer for you and probably would depend on why the rate has increased, the circumstances around that and the reason for the expense in the first place. If it should be calculated on a calendar month basis, then you are good to go it will work itself out with after this pay as this pay is doing the back-calculating. If it shouldn't then manually update the pays for this calendar month to the desired amount and next month (i.e. the payment date falls in June) then you are good to go as it would be a fresh month.
Thank you for your response.
I will work through it today & see if I can understand. I dont follow at this stage why it calculates expenses on a monthly basis rather than per pay period (weekly) but I'll see if becomes clearer as I give it more thought. Our premium increased with effect from 1st May and that is when I went and updated the calculation percentage and we've been having to manually override the calculations ever since.
I understand what Steven M is saying here, which is similar to super calculations.
When you pay someone say $300 one pay period, no super will calculate, but when you pay them $200 the next week or fortnight and it falls in the same calendar month the super expense will be $47.50 which most will say is incorrect on a wage of $200. Thing is that MYOB knows they were paid $300 with no super and has adjusted for this.
An easy way for you to check things are working correctly is to do a dummy pay run dated paying date of 1/6/19, pay periods don't matter, and then see if the calculations are correct.
Cancel out of the payrun and don't save.
I have tested as you proposed & it does indeed look like its going to calculate correctly from 1st June.
So MYOB calculates expenses by % is programmed to work for Super and everything else (we expense payroll tax, lsl cont, workers comp to jobs on a weekly basis) suffers the consequences! Thankfully there haven't been too many changes to % that I need to make on a regular basis.
I'm looking at uploading a weekly journal each week for payroll instead of trying to keep processing everything through myob which is just too cumbersome - it takes a while to get everything set up in Clearwater though to be able to run the testing.