PAYROLL ERROR

[JANELLE]

Hours entered incorrectly for 1 employee. I have entered all the incorrect details  again with a negative infront so as to clear error out. Then have entered in correct hours. No problems here BUT

My problem is the incorrect hours entered now have the incorrect Nett figure of $806.00 in my "Prepare Electronic Payments", which is incorrect.

My question is how do I get rid of this $806 from this section so that I/or other authoritarians do not accidently tag this person and pay him.

Many thanks

[Tracey_H · Accepted solution]

Hi @JANELLE 

You should have three transactions for this pay run:

1. the original incorrect pay
2. the negative pay
3. the new correct pay

The original incorrect pay and the negative pay are for the same amount and just need to be matched together to clear each other out. You can do this two ways, either in Prepare Electronic Payments or in Reconcile Accounts.

If both of these transactions are in the Prepare Electronic Payments window select them both and click on Bank File. When the Save As window opens click on Cancel because you don't need to save the ABA file. If only the incorrect pay or negative pay are in the Prepare Electronice Payments window, select it and click on Bank File, again if the Save As window opens click Cancel. That transaction will now be in the Reconcile Accounts window and can be matched with the other opposite transaction.

I'd also recommend reversing incorrect pays to remove the risk of data entry errors when recording a negative pay.

Please let me know how you go with this.

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

[JANELLE]

Hi Tracey,

I understand what you are saying but the negative pay is not showing  up anywhere in Prepare Electronic Payments window in order to be able to do this.

The negative payment has definitely been done as it has been sent via STP to the ATO but is not showing up so I can tag both entries to cancel out.

I await your reply.  Many thanks

[Tracey_H]

Hi @JANELLE 

You will then need to use the second way of handling this as explained above:-  If only the incorrect pay or negative pay are in the Prepare Electronic Payments window, select it and click on Bank File, again if the Save As window opens click Cancel. That transaction will now be in the Reconcile Accounts window and can be matched with the other opposite transaction.

If your negative pay is not appearing in the Reconcile Accounts window, go to Transaction Journal and find that negative pay. Open it by clicking on the zoom arrow and check the Pay from Account. If it's a payroll clearing account, record a Transfer Money transaction to move the net amount from the clearing account to the bank account. You can then match those two transactions in the Reconcile Accounts window.

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.

[JANELLE]

Thankyou, all worked out as you said.