Fixing a payroll overpayment or underpayment

https://help.myob.com/wiki/x/mJWyAQ

Close

How satisfied are you with our online help?*

Just these help pages, not phone support or the product itself

0

1

2

3

4

5

Very dissatisfied

Very satisfied

Why did you give this rating?

It's hard to find information

Instructions are hard to follow

Content isn't detailed enough

It doesn't fix my software problems

Anything else you want to tell us about the help?

AccountRight Plus and Premier, Australia only

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

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.

Here's how to handle overpayments and underpayments:

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.

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.

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.