Adjustment to previous pay periods?

Hi, I have an employee currently on workers comp. They were not able to work for 3 weeks which we paid whilst lodging icare paperwork. We have now been reimbursed by icare. However the amount paid by icare is slightly more than the employee normal weekly pay amount.

How do I process the small adjustment for the 3 weeks in question? The original payments were processed using the normal pay codes. Can I enter the adjustment amount using this same code? Will this correctly calculate the superannuation, leave accruals etc?

The employee is now back to work on light duties.

I am using reckon accounts desktop V2024. Thank you

Ann

Accepted answers

Acctd4

Hi @Ann_10524711

It's important to use the relevant Workers Comp STP categories in order for these to flow through correctly in your submissions.

Create a new "Workers Comp (Not Working)" RA Payroll Item(s) accordingly eg Leave - Workers Compensation (W):

https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/single-touch-payroll/in-detail/single-touch-payroll-phase-2-employer-reporting-guidelines/stp-phase-2-reporting-quick-reference-guide

Then, edit the pays for those first 3 weeks to use this new Payroll Item.

In the new pay, use this same Payroll Item for the additional topup amount that was paid.

NOTE: PAYGW applies however no Super is payable on Workers Comp paid whilst not working. You need to check your state legislation regarding whether leave accrues, as this is variable, depending on the location.

The beauty of STP is that it simply updates YTD balances each submission, meaning your next submission will automatically reflect all these changes ☺️

All comments

Acctd4

Hi @Ann_10524711

It's important to use the relevant Workers Comp STP categories in order for these to flow through correctly in your submissions.

Create a new "Workers Comp (Not Working)" RA Payroll Item(s) accordingly eg Leave - Workers Compensation (W):

Then, edit the pays for those first 3 weeks to use this new Payroll Item.

In the new pay, use this same Payroll Item for the additional topup amount that was paid.

The beauty of STP is that it simply updates YTD balances each submission, meaning your next submission will automatically reflect all these changes ☺️

Ann_10524711

Hi Shaz

Thank you for your informative reply.

I have a query though if you don't mind. When setting up the new payroll item, do I use 'payroll item type' of 'wage'? Then 'hourly wage' or 'other'? then when I enter the new payroll item name 'workers comp - no work', how do I put in the Leave type W? or does this automatically link up?

Can you please advise a step by step process for setting up the new item code?

Thank you :)

Ann_10524711

Hi Shaz

I think I have worked it out now.

Thank you again for your help. Have a good day 😊

Acctd4

Good to hear @Ann_10524711 !👌🏻👏🏻😊