Problems reconciling wage payments

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Problems reconciling wage payments

Hi,

 

I have 3 scenarios where I am unable to reconcile wage payments & am hoping someone can help.

 

1. An employee wanted some of his pay in cash urgently with the rest paid in the normal payrun the next day.  We made the cash payment from the till.  However, I didn't realise the significance of the bank settings for the payrun & instead made his wages be paid as 2 payments from the same bank account & then I deleted the bank payment for the amount I had already made them as part of my banks internet payment session.

2. In a different payrun, I did the payrun indicating that I would use one bank account, but when I went to make that payment I ended up using a different bank account.

3. Another employee had no bank account at the time for me to pay his wages into so I paid him from petty cash (it was only a day's worth of wages).  When I did the payrun I changed the setting to cash.  How do I reconcile his wages with the petty cash payment?

 

In both cases I am unable to reconcile the payments form the bank & petty cash with the wage transactions.  Would greatly appreciate any advice.

 

Thanks

 

Nicky

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Re: Problems reconciling wage payments

Hi @Nicky_S 

 

When reconciling you want to basically replicate what has happened in real life.

 

For the first scenario, I would be looking at deleting the relevant transaction(s) that you have recorded and the use the following process:

  1. Navigate to your Business Name Menu (top left)>>Accounts>>Account Lists
  2. Select Add Accounts
  3. Set up a new bank account i.e. give the account a number, name and set the account type of be Banking
  4. Save the creation of that account
  5. When that account has been created, navigate to your Business Name Menu>>Payroll settings
  6. Update the Bank Account for Paying Wages to be new bank account. Ensure that you select Save on the window
  7. Re-process the payroll transaction. This will place the payroll amount into the holding account. 
  8. You would then process individual Banking>>Spend money transactions to reflect those actual payments:
    One from the main bank account to the holding account (Allocation account) for the amount paid directly to the employee
    Another paid from the holding account to the till based account/the account that reflected money being directly taken from the till

For the situation with the different bank accounts, the system will use the Bank Account for Paying Wages as the bank account the money is taken from in MYOB Essentials. If that account was incorrectly set, deleting the payroll transaction(s), updating the Bank Account for Paying Wage (in the Payroll Settings) and then re-processing those pays would be the way to deal with that.

 

Similar situation with the above, you want to update the Bank Account for Paying Wages to be the required account that you do use to reflect that payment based account and then process the pays in MYOB Essentials.

Kind regards,
Steven

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Re: Problems reconciling wage payments

Hi @Steven_M ,

 

Thankyou for your suggestion.  However, I worry about the STP reporting impact.  I have done what you have suggested in the past & I saw that MYOB didn't notify ATO that I deleted the first transaction & instead just reported it again when I re processed it, making it show an incorrect W1 & W2 amounts for the quarter I was reporting PAYG withholding for due to the duplicated reporting.  Will this still occur?  Also, I have processed several payruns for at least 1 of the affected employees since the problem transaction - will there be any STP impact for them in deleting something that was reported months ago?  STP reports are meant to be made on or before the paydate - is there an impact on me now redoing that pay transaction which will show I'm reporting a lot later than when I actually made that payment.  All just to correct the wrong account I made the payment from.

 

I'd like to hear your thoughts on these concerns before I take any corrective action.

 

Thanks

 

Nicky

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Re: Problems reconciling wage payments

Hi @Nicky_S 

 

Payroll reporting is based on the year-to-date information of the employee. So if you are deleting the record of a pay it removes the pay values from the year-to-date of the employee. When you re-enter that pay you re-enter that information thus when you report it you are reporting the updated information

 

What actually happens is, say I have a pay of $100 that I need to delete a re-enter:

The ATO would have $100 | The employee's pay history is $100

I delete that pay from the employee's pay history the following occurs:

The ATO would have $100 | The employee's pay history is $0

I re-enter that pay and report it to the ATO

The ATO would have $100 | The employee's pay history is $100

 

From the ATO's end, they do see that you have another pay event but the amount of those pays don't change. 


ATO Article: About Single Touch Payroll

How Single Touch Payroll works

Each time you pay your employees you will also be sending your employee salary and wage information, pay as you go (PAYG) withholding and super information to the ATO through an STP enabled software or solution. These will be year-to-date amounts.


 

Kind regards,
Steven

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Re: Problems reconciling wage payments

Hi @Steven_M ,

 

I understand the employee details work on a year-to-date basis but the duplication I was referring to below was the employer level details.  When I view my STP Reports in the Business Portal, it is showing the totals for W1 & W2 for each pay run that is sent to the ATO.  So when I delete one from MYOB (& MYOB doesn't let ATO know that) & resend it again (even though it is for the single redone employee), 2 entries relate to this in that screen, making it look like I have paid more than I have.  I saw an article in ATO Community saying ATO intend to eventually use these details to prefill W1 & W2 on an activity statement (https://community.ato.gov.au/t5/Single-Touch-Payroll/Does-STP-affect-BAS/td-p/17265) hence my concern.  Also, they will see that the later transaction was reported late (after the pay date, can it get a late penalty?).  Both transactions get listed as Pay events, rather than the second one being an Update event which doesn't resend W1 & W2 to the ATO.

 

For the employee details I send to the ATO multiple times but with no changes to the YTD figures I can live with.  My concern for the duplicated employer details remain.

 

Regards

 

Nicky

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Re: Problems reconciling wage payments

Hi @Nicky_S 

 

Should you wish to send a pay event update report to the ATO after deleting a payroll transaction you are welcome to do so - Forum Article: Completing A $0 Pay Run would be able to assist with that process. Note: Sending a pay event to the ATO will send the year-to-date figures.

 

In terms of the W1 and W2 fields, my understanding from the article that you have linked is that the ATO want those field pre-filled in the future but they are currently editable fields at this time. If you do have any further enquires relating to those fields on with the Business Portal than we do recommend speaking to the ATO/your accountant.

Kind regards,
Steven

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