Payroll underpaid

Question

Hi

I have underpaid an employee after a rate rise was negotiated and the employee was inadvertently paid at the old hourly rate.  How do in fix this in payroll in Reckon Accounts Hosted and STP.

Tanvi_kataria · Accepted Answer

Hi @JenSchmidt

Welcome to Reckon Community.

To fix this issue, you can always edit and make changes to the figures in the pay cheque and then re-submit that to ATO as an update event. Update event will override the previous submission with ATO and fix the figures.

This can be done by following the steps mentioned below -

Double click and open the pay slip ➡️ Click on paycheque detail ➡️Unlock pay ➡️ Edit and correct the figures ➡️OK ➡️ Save the pay ➡️ Then Re-submit to ATO as an update event.

Please check this out for your reference - Update Event - Reckon Help and Support Centre

Feel free to let us know for any concerns/issues. Thank you!

Regards

Tanvi

Acctd4 · Accepted Answer

@JenSchmidt There are a few options:

* Create a new Paycheque for the underpayment amount only, using the same Hourly Pay Payroll Item at the rate of difference only, for the applicable number of hours
* Create a new Paycheque for the underpayment amount only, using a new Addition-type Payroll Item for the total difference as a fixed amount
* Edit the original Paycheques & amend the Hourly Pay rate to the increased amount

NOTE: If you are editing the original Paycheque(s), these changes will affect any Bank Reconciliation(s) since, so I would use a Clearing Bank account for the Paycheque(s) & just enter a Write Chq as per the relevant net amounts paid to the employee.

IMPORTANT! Changing Paycheques will also change the original PAYG & Super liability calculations so - depending on the timeframe - if that's the case, you may also need to Revise any BAS/Super lodgments & pay any differences there too.