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I'm currently recovering a wages overpayment with fortnightly repayments by the employee via payroll "deductions" but with STP I need this to be recorded as a reduction to "standard earnings", not as a "deduction".
Is it possible to create a negative "standard earnings" pay item to reduce the gross wages or is there another way to process/record the recovered monies for STP?
Solved! Go to Solution.
Welcome to the MYOB Community Forum, I hope you find it a great source of information.
The best way to fix a payroll overpayment is to adjust the employee's next pay by reducing the hours or amounts for the wage category that was overpaid. For example, if you've overpaid an hourly-based employee 8 hours of normal time, reduce the Base Hourly wage category on their following pay by 8 hours.
And it would be reported to ATO as a reduction to the standard earning.
Please have a look at a post in the Community forum to see how payroll correction affect ‘Single Touch Payroll’- Correcting a mistake using STP
You can find more information in this article on the ATO website- Correcting a Pay Event Report
I look forward to seeing the results.
That's not the optimal solution but I'll keep it in mind if all else fails.
The recovery is a set $ amount (as opposed to hours) so I could calculate the corresponding number of hours and reduce normal hours, but would this then affect leave accruals and Super calculations though?
If the employee has paid back the amount to you, only then you record a new pay by entering the adjustment as a negative (-) amount in the Amount columns of the category that was overpaid.
Then you zero out all the categories that you are not adjusting so that it doesn’t mess up with your Leave accrual and super calculation. The net pay amount should be equal to the overpayment, and shown as a negative amount.
It would be a separate payroll processed just to record the correction for the overpayment.
Follow the support note for elaborated steps- To fix Amount in the pay
But if the Employee hasn’t paid you back, you record it by reducing the amounts for the wage category that was overpaid.
Do let us know how you get on and if you require further assistance.