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I followed this procedure to record staff reimbursement:
But my external accountant tells me that this method is incorrect and there are problems in MYOB system.
Their reason is that in the Payroll Activity Summary report, the Total Wages does not equal the Total Wages in Profit and Loss Statement. The difference is the Employee Reimbursement. They say these 2 total wages have to be the same figure.
Then they say it will affect the report to ATO because of the Gross Payment figure showing is not correct (as the following picture example shows)
My external accountant insists this method is problematic and tells me to change it. But if MYOB officially suggests recording this way, wouldn't there be millions of people getting it wrong? I'm really confused.
Solved! Go to Solution.
Welcome to the MYOB Community Forum, I hope you find plenty of useful information.
Your accountant is correct in that the Gross on the payslips and the reports is incorrect in that the Reimbursement is included.
This is easy to get around however by running the Paroll Category Report for Employee Reimbursments and taking the amounts off the employee's Gross.
At the end of the year when you run the Payment Summaries you just DON'T select the Employee Reimbursment in Gross Wages at step 4 and you have the correct amounts reported on the Payment Summaries.
Thank you very much for your answer, Graeme.
I did exclude the reimbursement amount at the end of the year.
So can I still continue using this method to record reimbursement in the future?
The Payroll Activity Summary report will show the total wages values against the payroll accounts. If you do override an employee's wage account with that of a different account type, such as a liability account for reimbursement, the wages account (on the Profit and Loss for example) will not match the total wages on the Payroll Activity Summary report for the same period. This is due to the fact those values are gone against a different account, not the "standard" wages expense account.
If you are aware of the above occurring I don't see any concern and why you can't use that method going forward.
It may be best for the MYOB support notes to show another way to do things, please check out this post
Also see the comments after the actual accepted solution.
Reimbursements need to be kept completely out of payroll so errors in reporting to the ATO DO NOT happen.
So easy for the error to occur, but also so easy to make sure it wont.
Thank you for suggesting another way of doing this. Julie.
Hopefully MYOB can design their way of recording better so that this can be solved properly.