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Jobkeeper topup overpaid to employees

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Jobkeeper topup overpaid to employees

Hi We had paid annaul leave in advance in December for all employees, as we close for xmas holidays. 3 employees received jobkeeper topups for the period 4/1/21 - 22/1/21 (3 weeks). After 31st Dec, when I processed the BAS, it turned out that we were no longer eligible for jobkeeper. The employees were notified, and were happy to pay back the jobkeeper top up they had received. This will be deducted from their weekly pay, at an amount they have set. How do I process this on MYOB? Do I have to set up a new payroll category for the deduction? What would be the ATO category be, as it is a deduction, but not an allowance. Would I use the Jobkeeper topup account, but as a negative? Thank you

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Re: Jobkeeper topup overpaid to employees

Hi @lek 


Thanks for your post. This is a bit of a tricky one because the top up amount has been reported to the ATO through STP. I would recommend that you speak to the ATO about any possible consequences or obligations. I've done a search on the ATO website and forum but can't find any clear information on how to handle this.


From an AccountRight perspective you could clear the amount from the JobKeeper top up allowance and track the repayment by doing the following:


  1. create a new payroll category in the Wages tab called something like JK overpayment, select salary, ATO reporting category would be Not reportable and link those employees
  2. process a $0 pay for each employee:
    • enter the total Jobkeeper top up amount as a negative against the JobKeeper top up category
    • enter the total Jobkeeper top up amount as a positive against the new JK overpayment category
    • make sure you delete all over amounts/hours so the net pay is zero
    • this will transfer the top up amount from the top up allowance category to the new category, JOBKEEPER-TOPUP should be zero for those employees on their Summary of payments report
  3. when processing normal pays enter the repayment amount as a negative against the JK overpayment category. This will reduce the net pay and allow you to track the repayments.

A couple of important things to note:

  • make sure you fulfill Fairwork obligations with regards to deducting those amounts and make sure it's in writing
  • make sure the full amount is repaid by the end of the financial year
  • check with the ATO that removing the amount from the JK top up allowance is correct and for any other obligations

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.

Previously @bungy15

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