Error on super guarantee entered on employee

MMWNT
MMWNT Member Posts: 3

I have discovered a data entry error when an employee was recommenced in our system. The SG was set at 11 with no % sign, so therefore calculated each pay at $11 instead of 11%. I have contacted the Superannuation provider and they advised how to proceed with payment, however, to ensure that it appears correctly in our reports should I unlock each affected pay and amend the super amount and then when I process the payment through the liability cheque it should appear and can be balanced? Thanks in advance!

Answers

  • Kris_Williams
    Kris_Williams Member Posts: 3,251 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Yes that’s correct. Go to the superannuation payroll item first and change it there to 11%, then go to each pay, unlock it and change the hours and then change them back and it should calculate the correct super.

    I would always just keep an eye on the gross tax and net, and make sure it stays the same before you save it

  • MMWNT
    MMWNT Member Posts: 3

    Thanks Kris, thank you so much for your reply, to confirm, I have unlocked each pay to calculate in correctly on each pay, but not kept the change, how will this appear on future reporting if I do not amend each pay, I am thinking I need to write the liability cheque for super to make the year balance, and to ensure this reconciles on bank statements?

  • Kris_Williams
    Kris_Williams Member Posts: 3,251 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited November 2023

    You have to amend each pay and save, then you will have to work out the differences you owe for super using the payroll totals report (or whatever report you normally use). I would then enter a bill for the difference dated the end of the period you are balancing to, and post to the liability account. If you go to the super liability register the balance at that date should then be zero. This is how I deal with the super every period, that way I know I have paid the correct figure

    Feel free to ring if you have any questions 0415 940 843

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,325 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    @MMWNT Entering a bill doesn't clear out the Payroll Item liability, only the account. Using Liability Cheques - as you mentioned - is the correct process.

    If you Unlock, amend & re-Save each affected Paycheque, you will see the remaining balance outstanding on your Payroll Liabilities Report & when you go into the Create Custom Liability Payments window 😊

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    [email protected]

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • MMWNT
    MMWNT Member Posts: 3

    @Acctd4 Thank you, that is what I thought, your assistance is very much appreciated.

    Also @Kris_Williams Thank you for your assistance too!

  • Kris_Williams
    Kris_Williams Member Posts: 3,251 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    I have always entered the bill because I can enter it on the correct period date, and so the account shows a zero balance. I do know the recommended way is via pay liabilities but I have used this procedure for over 20 years and it works for me and causes no issues.

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,325 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited November 2023

    @Kris_Williams Not on the surface but your Payroll (liability-linked) Items for PAYG, Super (& any other liabilities eg Portable LSL, Child Support, Workplace Giving, Union Fees, any other Salary Sacrifice etc) will all have been accumulating - for all that time - without ever being cleared ("paid"). Therefore, none of your payroll liability reports are correct & can't be used for reconciling at EOFY 😳

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    [email protected]

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Kris_Williams
    Kris_Williams Member Posts: 3,251 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    When I lodge EOFY STP the totals are always correct, what else should I be looking at?

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,325 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Not just STP but for also cross-checking with financials (remaining balance sheet liabilities)

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    [email protected]

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Kris_Williams
    Kris_Williams Member Posts: 3,251 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    i always check my balance sheet with all relevant reports and can always prove that my balances are correct

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,325 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    The most accurate reflection of payroll liabilities are the Payroll (Item) Liability reports because these contain the liabilities per actual Paycheque v the specific payment of that accumulation.

    Any additional GJs & Bills will change the amount shown in the Bal Sheet only, so this can result in discrepancies.

    In payroll, a Payable isn't an Accounts Payable Bill as it's short-term. A liability reflects what an entity owes, including debts & taxes. Payment of a liability generally isn't deductible, whereas payment of a Payable (COGS/Expense) is.

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    [email protected]

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Kris_Williams
    Kris_Williams Member Posts: 3,251 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Thanks Shaz yes I am familiar with financials and what they represent and appreciate your input. Also when I say I enter a bill for super I post it to the liability account, so it isn’t duplicated on the balance sheet it’s just shown in a different place.