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Allowed long term employee to go into the red in Annual Leave accruals!

Fiona Zinn

I allowed a long term employee to go into the red in Annual Leave accruals as the plan was for him to repay the hours via work to pay it back.

Unfortunately he has had ongoing bad health and has not returned to work. He has since paid back what he owed that went into negative accruals [including PAYG and Superannuation contributions].

I shouldn't have done this in payroll as STP is now showing that he received holiday pay/earnings, and now that he has repaid me in full I need to update STP reporting to reduce his earnings and reflect the accurate amount for this payroll year.

As you cannot creative a negative pay run to reverse this, I need help to sort it, so that his Payment Summary represents accurate earnings. Additionally, this was over several weeks not just one pay week. A big mess! 😒

Comments

Rav

Hi @Fiona Zinn

This post has been created in the About Reckon Community section, can you let us know which specific Reckon software you're using that this post relates to?

Fiona Zinn

Reckon Accounts Hosted 24

Kris_Williams

can you identify the amounts that he has paid back on the payroll? If so you can delete those pays and then resubmit STP. Have you paid the super to his fund?

Fiona Zinn

Yes I can delete those pays and resubmit STP but some weeks are messy because he tried to come in and worked a couple of hours, so it's not a straight loan of hours. It's worked some hours and given some holiday hours.

If I can delete and resubmit the payslips, then what do I journal the refund to that he made to the company. Do I put that back in my Wage and Super accounts?

And yes the super did go to the fund! I feel silly and will never be generous again!

Kris_Williams

You will have to identify some pays that equal the amount that was paid back and go from there. You may have to include the super in this amount because you can’t get it back from the super fund to my knowledge and if he has paid it back it shouldn’t matter, there will also be the problem of the super liabilities account not balancing once you delete the pays. How did you handle the money he repaid?

Before you try any changes backup your file

You need to write all these figures down and work out how the changes will affect the file. I think I would first of all work out what pays will need to be deleted, then enter cheques for these net amounts to a clearing account into which you will post the money he paid back. That way the bank rec will still balance when you delete the pays.
‘the super liability account will then have a debit balance which you will also need to work out first. Part of the payment you received could go into the super liability account to clear that debit and the balance in the clearing account would be the amount of net pays you need to delete. It is complex and without actually doing it a little hard to be 100% sure

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