Partner Zone
Partner Zone

Single Touch Payroll - Wages overpayment deduction

This thread is now closed to new comments.
Some of the links provided in this thread may no longer be available or relevant.
If you have a question please start a new post.
Highlighted
TessH
2 Posts
User
TessH
User

2Posts

0Kudos

0Solutions

Solved: Go to Solution

Single Touch Payroll - Wages overpayment deduction

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?

Thanks

Tess

3 REPLIES 3
MYOB Moderator Satyam_N
313 Posts
MYOB Moderator
Australia
Satyam_N
MYOB Moderator

316Posts

66Kudos

58Solutions

Re: Single Touch Payroll - Wages overpayment deduction

Hi @TessH

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.

 

 


Cheers,
Satyam
MYOB Client Support
TessH
2 Posts
User
TessH
User

2Posts

0Kudos

0Solutions

Re: Single Touch Payroll - Wages overpayment deduction

Thanks Satyam,

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?

Tess

MYOB Moderator Satyam_N
313 Posts
MYOB Moderator
Australia
Satyam_N
MYOB Moderator

316Posts

66Kudos

58Solutions

Accepted Solution Solved Solution

Re: Single Touch Payroll - Wages overpayment deduction

Hi @TessH

 

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.Overpay - salary.gif


Do let us know how you get on and if you require further assistance.

 


Cheers,
Satyam
MYOB Client Support
Didn't find your answer here?
Try using advanced search to find a post more easily Advanced Search
or
Get the conversation started and make a new post Start a Post