Reverse Annual Pay

Somehow Annual Pay has appeared on the Employee Record, and has been paying at a rate of 1.07 each pay.
This means the employee has been overpaid, how can I reverse this, it won't allow me to enter a negative against the hours, I have now removed Annual Pay from his master.

Comments

glendaveale

Hi. I think you would have to enter a minus in the rate column. So add up all the amounts and enter the total. Depending on how many pay periods have been affected you might be better to go back and edit each pay.

Carol_7524758

Thanks for trying Glenda, but your answer is not helpful.

As I mentioned initially, it won't allow me to enter a negative, and I cannot go back and alter each pay as that will alter the Net pay and then I won't be able to reconcile. I also don't understand how it was even recorded in the first place, the Annual Pay is a Salary code and if no hours are entered should record nothing!!

Kwikbooks (Professional Partner)

Hi Carol

Unfortunately salary works differently it doesn't require hours to generate. You should put hours in if working with salary, if you put incorrect hours in say 30 instead of 38, it still pays the full amount but increased the hourly rate on the payslip. If you are entering salary sick or A/L then you put salary 30hrs second line salary sick 8hrs this well then generate correctly.

Your problem is as Glenda has suggested, you can go back and amend each payslip but write the 1.07 off to tax so the net balances i.e reduce tax by 1.07 or as Glenda suggested add them all up and put one payslip through a minus rate should work if not minus hours, then adj the tax so the net is zero.

You must find the source of the problem and fix this first

Carol_7524758

The system won't allow a minus rate or minus hours, I would like to reduce this code back to zero, but the system is not letting me. I really need Reckon staff to assist in this query.

Kwikbooks (Professional Partner)

it works on mine including minus.

What code, do you mean the annual pay, how are you trying to reduce it, at the payroll item source? From the employee std pay screen? or on the past payslip itself?

Kwikbooks (Professional Partner)

If on the payslip itself, have you 'unlocked' they pay first

Linda ABC

Hi Carol - you are right that you cant make the salary amount negative on this payroll item - but thats not important - the main thing is you want to reverse out the amounts that were allocated to the Wages expense account for this payroll item... so.. you have 3 ways of doing this...

1. Go back through each paycheque - Unlock it and delete the Salary line that shows as 1.07 - then modify the tax amount so that the Net amount of each pay DOES NOT CHANGE...

2. check your Salary payroll item - make a note of where it is allocated - should be something like Gross Wages... now create a Deduction payroll item - call it Correct Salary Error - make sure it points to the same account that you noted in the previous step... now, go back through each paycheque - Unlock it - and add the Correct Salary Error payroll item to reverse out the 1.07... but then manually edit the Tax so that the Net amount of each pay DOES NOT CHANGE...

3. or, if you prefer, just use the Correct Salary Error deduction to correct the amount over paid in all the previous pays - and let the Tax take care of itself.

Hope this helps?

Kwikbooks (Professional Partner)

Hi Carol

Creating unnecessary payroll items you will be forever stuck with is not ideal, as I have already suggested,amend to pay and write off to taxk.

You can use any payroll item if you want to do bulk and a minus it all goes to gross anyway, hourly, salary, a/l etc. so any payroll item will do minus and adj tax as stated previously so tax remains the same.

the only adj you will need to make is super, as the salary, even minor will affect super, for this reason I already suggested amend the payslips earlier.

Carol_7524758

Hi Kwikbooks,
I didn't create the item, I didn't even pay the item, I am simply trying to help a client correct the item. Writing off to tax may fix the problem but it is not right. Reckon should allow you to reverse anything and this is my point, and this is why I would like a response from a Reckon employee rather than a member of the public. Thankyou for your assistance. I am a professional bookkeeper and I do know what I am doing. All these fixes are simply that, but in the end none of them are correct, they are just fixes.
Regards,
Carol.

Linda ABC

Hi Carol - both of us that are trying to help you are experienced Reckon partners, likely to have as much (if not more) experience as any Reckon employee/tech support person. But by all means - call tech support during the week and ask/pay for their assistance. The community forum is where you are likely to get expert advice for little or no cost at any hour of the day or night.

The options that we have provided as solutions for you and your client relate to the small nature of the variations and the easiest way to fix them... However, by all means - there is no issue with editing the paycheques, unlocking them, deleting the incorrect Salary lines, letting the Tax alter itself, letting the Net Pay alter itself, then working out how much the employee has been over paid in total - short paying the employee the next payday by this amount - sounds like its a small amount but you can't short pay an employee without their agreement (hence the previous suggestions that don't change the Net Pay), then reissuing payslips etc... As bookkeepers and accountants we all like things to be perfect, but often we have to be practical when it comes to correcting errors and fixing client mistakes. Will leave you to decide your course of action. Cheers Linda

Kwikbooks (Professional Partner)

Hi Carol

As Linda has said, this is a community forum where we help others for free. If you only want Tech support to help then you will need to ring tech support. Yes at times Employees will respond to errors & tech issues.

This is a bookkeeping one, and your only choices are:-

1. amend each pay manually - and if you don't want them to owe the company then you need to adj. the tax, it is the only fair way, you have overpaid them 1.07 so you reduce the tax paid by 1.07 and the employee has to pay back nothing.

3. Work out the total over payment and do 1 pay entry using an hourly minus and adj tax in a lump sum.

2. Delete or amend the pays leaving an amount the employee owes the company, then short pay them the next full pay or over weeks until the amount is paid back.

Good luck!!

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