Incorrectly paid an employee on LWOP

[Sandyw13]

Hi

I have incorrectly processed and paid an employee who is on Leave without pay.  She has returned the money into our bank account via EFT. 

 What is the best way to deal with the original error and the return of the money?  I have looked at reversing the original transaction through the reverse function, but this puts a DR back into my EFT Payment Clearance account and doesn't update the ATO reporting.  I then need to process the refund into the bank account.  

Do I go into Payroll and process a separate -ve pay to cancel out the one incorrectly paid.  I could then use Cash method and have the DR go into our bank account.  Would this also notify the ATO of the reversal as far as the one touch reporting goes?

I don't want to go processing more pay runs and making the matter worse if this isn't the correct way to go!

Thanks in advance for assistance

Sandy

[Andrew_Y · Accepted solution]

Hello @Sandyw13 

Thanks for your post.  I hope you will find the community forums to be a great place for help and information.

If you have incorrectly paid your employee you would typically look to be reversing the recorded pay.  Once this is done, your next STP reported YTD will be reflecting that that pay is effectively not included/deleted and deal with the original error in the most basic sense.

With regards to money coming in, generally speaking you could handle it as receive money, but I cannot advise in this area, and am only able to provide general information in this situation.