Reversing Pay Run and Submission to ATO of STP

tjosephtjoseph Member Posts: 29
edited September 7 in Accounts Business Range
We have incorrectly paid someone and have uploaded this to STP. The employee has since returned the funds to us. How can we alter the payroll in reckon that was put through and correct what has been uploaded to ATO via STP? 
my understanding is that we can't put through a negative payroll - is this correct? What is the best way to correct this issue?

Thanks, 

Comments

  • SHARON KURRLESHARON KURRLE Member Posts: 6
    edited September 7
    Morning
    I did the same what I did when I had edited the payroll for that person I then reloaded the pay for them onto STP and it fixed itself. Dont know if that is right but I couldnt get anyone that was able to help me with it. so I am hoping it is correct.
  • Acctd4Acctd4 Accredited Partner Posts: 929 ✭✭✭
    edited September 7

    You are correct in that you can’t pay someone a negative paycheque.

     

    Will this employee be receiving another pay at some point this FY?

     

    I would delete their incorrect pay (that was returned) & enter it via a Write Cheque instead, ensuring you select the employee name as the payee (“Pay to the Order of”).  You will receive a warning that wages should be paid via payroll.  This is fine & you can ignore this message as this entry is simply to have the transaction existing for reconciling.  Post the transaction to your relevant wages expense account with NO tax code.  The refunded amount can then just be entered as a Make Deposit - again using the employee name in the Received From column - posting back to the same wages expense account (in the From Account) to offset that account back to $0.00.  This then prevents it from impacting their payroll in the first place.

     

    Each time you lodge an STP submission it updates YTD totals, rather than just that pay run.  Therefore your next STP submission that includes this employee, should bring their balances back to being correct as their YTD will have been updated. 

    (If they are not being paid again in this FY, the “Finalise Year” STP process will reflect this)

     

    It’s very important to check your figures each submission via your RA reports.

    I use a modified YTD Payroll Summary - set to show columns by applicable pay period (eg week, 2 weeks etc) - & always cross reference that pay run & YTD totals.

     

     

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    0422 886 003

    [email protected]

    www.accounted4bs.com

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    Reckon Accredited Partner (AP) Bookkeeper * Regd BAS Agent (No: 92314 015) *

    ICB-Certified Bookkeeper * Seasonal Tax Consultant since 2003

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    0422 886 003

    [email protected]

    https://www.accounted4bs.com/

  • ZappyZappy Accredited Partner Posts: 4,692 ✭✭✭
    edited September 7
    Your mistake was getting him to pay you back. You could have deducted it from a future pay via an adjustment. It would have rectified itself. 
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