Wrong PAYG entered for Backpacker

Cheryl Williams

I have situation where the wrong tax percentage was entered for an employee who is a working holiday maker. The tax rate has been rectified in Reckon Plus 2021, back to the 15% rate. The backpacker had not informed me of my mistake [which it is!] was put on to the 2-TFT [white paper info followed] he now has reported the mistake and would like to get the difference returned as pay or put into bank account. The time frame was over a four pay run period. I have read some discussions on adding a deduction for the amount of this difference, then clear the deduction with a cheque or deposit. Even thought of doing an adjustment for the one employee in a pay run of the dates made. But I do not want to make a major mess of this all, so I am willing to accept help from you professionals out there.

Malcolm

Acctd4

Hi Malcolm

Work out what the total net pay difference is then create a new Paycheque for it - You might want to set up a new Payroll Item (eg Net Pay Topup configured for no PAYG or Super as that should have calculated on the original gross)

NB: You may need to do a YTD Adjustment to correct the PAYG as this can’t be minused on a Paycheque.

This will then ensure the YTD amounts are also all correct.

Cheryl Williams

Thank you it work out fine.