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AccountRight Plus and Premier, Australia only

If you've paid an employee too much or not enough, you can:

  • adjust the employee's next pay, or
  • process a separate pay for the adjustment.

If an employee is owed money due to a wage increase, see back pay.

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Using Single Touch Payroll?

Only year to date (YTD) amounts are sent to the ATO as part of Single Touch Payroll reporting. If changing a your pay adjustment affects YTD amounts, the updated amounts will be sent when you with your next do a pay run.

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titleTo fix an overpayment

To fix an overpayment

To adjust the employee's next pay

When you process the next pay for the employee, reduce 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.

 

Similarly, if you've overpaid a salaried employee $100, reduce the Base Salary amount on their following pay by $100.

 

To process a separate pay for the adjustment

Start a new pay run for the employee and enter the adjustment as a negative (-) amount in the Hours or Amount column of the category that was overpaid. Remember to zero out all the categories that you're not adjusting. The net pay amount should be equal to the overpayment, and shown as a negative amount. You can also use the Memo field on the pay to enter a note about this payment.

For example, if you've overpaid an hourly-based employee 8 hours of normal time, record a pay with -8 hours in the Base Hourly wage category.


Similarly, if you've overpaid a salaried employee $100, record a pay with -$100 in the Base Salary wage category.

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When recording a pay with a negative net pay amount, the payment method is automatically changed to Cash and the linked bank account for cash payments will be used. This can't be changed.

 

Can't record a negative pay? This feature is only available in the new AccountRight. See the help for these other products: AccountRight v19 | AccountEdge.

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titleTo fix an underpayment

To fix an underpayment

To adjust the employee's next pay

When you process the next pay for the employee, increase the hours or amounts for the wage category that was underpaid.

For example, if you've underpaid an hourly-based employee 8 hours of normal time, increase the Base Hourly wage category on their following pay by 8 hours.

 

Similarly, if you've underpaid a salaried employee $100, increase the Base Salary wage category amount on their following pay by $100.


To process a separate pay for the adjustment

Start a new pay run for the employee and enter the adjustment amount in the Hours or Amount column of the category that was underpaid. Remember to zero out all the categories that you're not adjusting. The net pay amount should be equal to the underpayment. You can also use the Memo field on the pay to enter a note about this payment.

For example, if you've underpaid an hourly-based employee 8 hours of normal time, record a pay with 8 hours in the Base Hourly wage category.


Similarly, if you've underpaid a salaried employee $100, record a pay with $100 in the Base Salary wage category.

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<h2><i class="fa fa-comments"></i>FAQs</h2><br>
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titleWhat if the employee pays back an overpayment?

What if the employee pays back an overpayment?

If the employee has paid back an overpayment, or is intending to do so, we recommend processing a separate pay for the adjustment as described above.

This lets you match the payment by the employee to the overpayment in your bank reconciliation.

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titleRelated topics
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Processing your payroll

Changing a recorded pay

Adjusting leave entitlements

Back pay

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