Reversing a payroll entry

[TriciaWaters]

I have processed an employee with the wrong tax amount taken out via AccountRight, Payroll function.  This has been sent to the ATO.  Note that I do not have auto EFT payments set up so the correct amount has been EFT into the employee account.

I have looked at all the links but I can not find step by step on how to reverse this. 

[Tracey_H · Accepted solution]

Hi @TriciaWaters 

Thanks for your post. To reverse a payroll transaction:

1. go to Find Transactions, find that pay transaction and open it by clicking on the zoom arrow
2. click on Edit and select Reverse Transaction
3. If the pay being reversed is a cheque or electronic payment, a message will be displayed advising it will be recorded as cash. Click Yes to proceed.

4. Click OK to the following confirmation message:
   

5. Click Record to process the reversal.

6. When prompted to declare the reversal to the ATO, enter the name of the Authorised sender and click Send.

You can find these step-by-step instructions in this help article: Changing a recorded pay

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.

[TriciaWaters]

Thank you

[BNS]

Hi Tracey,

I am not being given the option to reverse a payroll run. I can select Delete Transaction but then I get an error message telling me I need to reverse the transaction. STP has been accepted by the ATO.

Any ideas?

[Tracey_H]

Hi @BNS 

Go to Setup>>Preferences>>Security tab and make sure Transactions can't be changed; they must be reversed is ticked. Then follow the steps above to reverse that payroll transaction. Once a payrun has been accepted by the ATO it does need to be reversed.

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.