Overpayment to Employee and Leave Reversal due to Work Compensation

Question

Hi all,

Just wonder if anyone can advice how to correct this pay reversal/adjustment in Reckon.

We have an employee who applied for work compensation. Before the claim gets accepted, she was still receiving pay from us by using her annual leave and sick leave balance. However workcover has now advised us that the claim is accepted and she is now back paid by workcover directly from the injury date (of which she has already received pay from us). Workcover now has requested for us to reverse all the leave entitlements used from the injury date. Because the work compensation is at lower rate than her normal wages and there is no super payable for the work compensation, how do I reverse the pay in the system to reflect that we have overpaid her (to be taken against her future pay) and to reverse the leave used so we can display the correct leave balance for 30 June reporting.

Thank you in advance!

Acctd4 · Accepted Answer

Welcome to the Community @esap2208 !

You need to create a “Workers Comp” Payroll Item (linked to the W/C Tax Tracking Type)

You also need an additional “Repayable Topup” Payroll Item & a corresponding Deduction-type.

Edit all the pays - to split between the W/C & Topup as applicable - then use the deduction one for recouping on subsequent Paycheques

(Removing leave Payroll Item(s) will automatically reverse the leave hours previously recorded) 😁