Payroll creating a double up of wages since move from Essentials to business pro

[RUNCO]

I have recently discovered that since the move of accounting programmes back in Nov last year ( NZ) that my employee profile's had been checked as bank file ( I did not previously have this checked) which resulted in all my employee wages being coded to an electonric clearing account. I pay my employees manualy via bank transfer after submiting their pay via myob payroll. Then in the bank feed I code them as expense wages account. ( just a side note that one of my employess is paid into 2 bank acounts, this new pay roll does not record this so I manually alocate his pay to the correct wages expense account, ie this is not able to be matched) This was all working fine prior to the change over.

I called the help line to ask why this had happened and how to get rid of the wages appearing in my electronic clearing account. After a 3 hour phone conversation with a payroll advisor she has journaled this figure (as a wages total)  from the electronic cleaing account to my wages expense account. This issue I have now is that the figure includes amounts from prior to my last bank reconciliation done 31 jan. I am Trying to do a bank reconciliation for end of Feb and I am now out by this amount of the journal. 

 My second question and going forward she said I would need to code the wages into the clearing account (from the bank feed instead of to wages expense account) then journal them each time back to the wages expense account. My wages I processed  a couple of days ago show me that trying to code them the old way ( via bank transacations) is causing me a double up when I do a bank recon.

She has not explained why this has happened, to be honest journaling each employees wages is double handling for me and not ideal. ( Here is my case no from the phone call 01623810 - Trish).

I would appreciate advice as how to fix this journal amount that is now causing my bank recon not to match. And for future payroll what is the correct process ( ie hopefully without having to create a journal each time).

[Hannah_V]

Hi, @RUNCO. Thank you for your post here in the Community Forum.

It appears that your employee's payment details shifted to electronic after transitioning to MYOB Business. To modify the default payment method for your employee, you can navigate to Open Payroll > Employees > Employee's Name > Payment Details > Payment Method > Cash.

Regarding payments already processed using this method, you can access the Prepare Electronic Payments window under the Banking tab. From there, you can generate a bank file for each transaction individually to transfer them to the correct bank account. Please ensure that the dates align with their corresponding bank feed transactions.

Let me know if there's anything that I can assist you with and I'll be happy to help.

If I'm able to help you today, please click "Accept as Solution" to assist other users in finding this information. 

Best regards,

Hannah

[RUNCO]

Hi, Im still looking for a solution to this payroll issue.

The above advice to ' Open Payroll > Employees > Employee's Name > Payment Details > Payment Method > Cash' does not match my programme (NZ).

This is what my employee tab says;

Personal

Employment

Standard pay

Leave

Pay history

I would like to know the correct procedere to process my employees pay via payroll. I dont use bank file, also note that I have one employee paid into 2 x bank acs ( split payment) which wont auto match, another employee is paid in piece work which I process as pay items, this does auto match however both employee wages are showing double up when I do my bank reconcilation. I would really appreciate some help here, I now how about one month of payroll that I cant reconcile.

[Genreve_S]

Hi @RUNCO, 

Appreciate your response. If you're not using the bank file option for employee payment, you can deselect this in the settings. When selected, wage payments are coded to the electronic account and need to be processed from the electronic clearing account to the bank account. Otherwise, they're coded directly to the linked bank account in payroll for automatic transaction matching.

For employees who need their wage split between two accounts, this needs to be coded in the electronic clearing account and journaled to the correct accounts subsequently.

If you're experiencing duplicate transactions, it's likely due to processing payroll to the electronic clearing account and allocating your bank feeds from the bank transaction window. Instead, transfer wage transactions from the electronic clearing account to the chosen bank account. This aligns with the intended application use. For more information, consider the 'Electronic Payments' article.

For further clarification, reach out to support via myob.com/support or myaccount.myob.com. MOCA, our virtual assistant, can assist with queries. If MOCA can't resolve your issue, you'll be redirected to our live chat team.

Let us know if you need more assistance.

Thanks,

Genreve

[RUNCO]

Thanks for your reply and advice @Genreve_S 

My employees are already deselected from form bank file payment setting but I am still getting my wages doubled up when viewing bank reconcilation and on my accounts list.

I'm trying to understand how journaling the 'wage transactions from the electronic clearing account to the chosen bank account' is correct?  surely if the wages are being allocated to the electronic clearing account then they need to be journaled from this account back to the wages account?

Would an easier way going forward be to change to payroll settings that the wages are set to the wages account instead of having to journal each time. I looked in the payroll settings and it dosent appear I can edit this anywhere?

[Earl_HD]

Hi @RUNCO,

Additionally, to address this issue, please follow these steps:

1. Navigate to Accounting > Chart of Accounts.
2. Select the account you want to modify.
3. Check the opening balance for the ledger requiring reconciliation.
4. If the opening balance is ZERO, adjust the OOB amount accordingly.
5. If the opening balance is non-zero, the user will need to reconcile again.

I agree with @Genreve_S suggestion. If you are encountering issues, it's likely because you're processing payroll to the electronic clearing account and allocating your bank feeds from the bank transaction window. Instead, consider transferring wage transactions directly from the electronic clearing account to the designated bank account.

Feel free to post again, we're happy to help!

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

Regards,
Earl

[RUNCO]

Thanks for your reply @Earl_HD 

Can I ask for some clarification around ' it's likely because you're processing payroll to the electronic clearing account' I dont think I have any choice in how this payroll is processed and coded to the clearing account?

Secondly 'and allocating your bank feeds from the bank transaction window' yes I do allocate from here, this is how I have always coded my wages. 

As per the previous advice from @Genreve_S  I have recoded (from the bank feed) my wages to the clearing account. Then I have created a journal for the total amount (showing in the clearing account)  from the clearing account to my cheque acount. On reviewing my chart of accounts the clearing account is now 0, which is great however this journal has not moved the amount to credit into my wage expense account (where it should be) and my cheque account is now over stated by this amount. Also in my bank reconciliation, this figure is showing out of balance including the wages individual amounts that I just journaled as a total.

I feel like Im taking one step foward and two steps back.

[Princess_R]

Hi @RUNCO,

Thanks for your response.
 
When you receive a bank feed transaction, you should match it with your recorded MYOB transactions. If there's no transaction showing from the match bank transaction window, you can allocate your bank feeds into your MYOB account. Once you allocate a bank transaction, a matching transaction is created in MYOB. For example, if you allocate a withdrawal, a spend-money transaction is created. If you allocate a deposit, a receive-money transaction is created.
 
You might want to check out this link, which has some scenarios about payroll clearing accounts. It could give you a better idea of what's going on. If things still don't add up because of the wages you've journaled,. It would be a good idea to give our phone support team a call, as this issue seems a bit tricky and might need a closer look or a chat with our virtual assistant, MOCA, on our website. 

Additionally, you can submit a support request via My Account.
 
Feel free to reach out if you need further help.

Cheers,

Princess