Salary Sacrificed Super Mistake

[samg]

Hi,

I processed the pays with a mistake in one employees salary sacrificed super. I put it in as a positive value instead of a negative on their standard pay. After running the pays an ABA file was exported. Now when I look at pay super in myob there is a negative value to pay for that employee.

I can see if I open the employees pay there is a reverse transaction option. Is this the best way to fix it? Reverse that employees transaction and run their pay again?

Cheers,

Sam

[LRBooks61]

Hi Sam,

you don’t say whether or not you have processed the aba file to the bank, so I will assume rightly or wrongly that you haven’t as this pay is incorrect.

firstly I would delete the electronic payment for the entire payroll.

then delete the payroll entry that is incorrect .

redo that payroll (use pay an individual) using the correct payroll dates and process as usual..

when end you get to prepare electronic payments all the pays should be there to upload again.

good luck

Lisa

You can enter into each employee in their card file under stand card the salary sacrifice amounts so that you can avoid future errors

[samg]

Hi Lisa,

Thanks for your reply. Unfortunately I have processed the file to the bank.

Any suggestion on how to proceed?

Sorry for my lack of knowledge. I work in the IT department and have been roped into payroll due to a sudden vacancy. Bit out of my depth.

I have entered the amount into their card to avoid this happening again.

Thanks,

Sam

[LRBooks61 · Accepted solution]

Hi sam

nothing quite like being thrown in the deep end,,,

i am again assuming that that the payroll has been authorised and paid to the employee so therefore the only way to correct this is to adjust the next payroll run.

So I would suggest you determine what the correct pay should have been and then compare what was paid and then adjust all affected accounts in the next payroll

eg and this is just some figures plucked from the air....

gross wages - sal sac - payg = net wages

2000 - (+1000) - 500= 2500

payg tax would only be paid on the gross amount - the salary sacrifice , so in this case (if I understand correctly) the salary sac was added and therefore the payg would have been calculated on the 3000 instead of 1000.

if this employees pay is the same each pay run you could just compare payslips from this pay to a previous pay and calculate the differences. 

I would also run a super report for this employee to make sure the super is correct..

Super does not necessary get calculated on the gross salary if super salary sacrifice is deducted , workplace can determine that.

So check all the figures and you will be able to override the figures for super , super salary sacrifice and PAYG.

It’s just maths and you can do it!,

Lisa

[samg]

Hi Lisa,

Thanks for your answer, really appreciate your help. That all makes sense. I just ran through a test pay and I think I know how to balance it now. I think the small number ($13 salary sacrifice) made it easier for this to slip by me. Will be more thorough next time.

I have one last question if you may know the answer. When I click through to pay super, the employee has 2 positive amounts and 1 negative amount for salary sacrifice. We have only been using myob since I took over 2 weeks ago.

When it comes time to process the super payments will it bunch up all the transactions for that employee and send the balance or would it do them individually and somehow try to withdraw from their super?

One day I might get my head above water 😊

Cheers,

Sam

[LRBooks61]

Hi sam

i don’t use the myob super payment facility to pay super - we use a different clearing house.

however the super should be reported to the superfund separately as SGC and salary sacrifice. Therefore it should be reported as two different amounts

The payment transaction for super contribution payment should  be coded to the superannuation liability account

my only query for you is are the two positive amounts equal to the negative amount,  it should be sal sac +SGC = super contribution paid to fund.  If that is true then all should be well

[samg]

Hi Lisa,

Thanks again for your help. I think I found the answer to the negative super question at the link below. Looks like I need to wait until I have a Salary Sacrifice total for the employee that is in positives before I can process it.

http://help.myob.com/wiki/display/ar/Make+superannuation+payments#expand-WhatcanIdoaboutnegativesupe...

You are a life saver!

Cheers,

Sam