How to adjust the payg component of an overpayment to an employee

Jo Arnold
Jo Arnold Member Posts: 87 ✭✭
edited July 2020 in Reckon Accounts (Desktop)
I have an employee who was overpaid a bonus which was added to his gross payment; hence was subject to PAYG.  The net amount of the over payment has been repaid by the employee.  How do I adjust the PAYG component of the over payment?

Comments

  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited July 2020
    JO.  If the overpayment was made the payroll, then the reversal should happen through payroll as well.  It sounds like the employer has given you a "cheque" or something else as a means to pay back the overpayment, according to the words you have used.  If this is the case, you have lost your ability to reduce the employee's gross in payroll as well as having that reversal reduce the overpayment of tax.
    John L G
  • Lynne_8946547
    Lynne_8946547 Member Posts: 93 ✭✭
    edited February 2020
    Hi Jo

    If you open up the employee's payslip and adjust the bonus to the correct amount it will adjust the payg accordingly. Hopefully the difference between this new net pay and the original net pay is the same as what the employee repaid, thus keeping your bank reconciliation correct.  If it does not then adjust the bonus amount until you can get these to match.

    You will then have to do an 'update event' just for that employee through STP so that the change in payg is reflected there.

    Hope this helps.  If you have any questions please ask.

    Lynne
  • glendaveale
    glendaveale Member Posts: 176 ✭✭
    edited February 2020
    Exactly what I would do.
  • Jo Arnold
    Jo Arnold Member Posts: 87 ✭✭
    edited February 2020
    Hi Lynne

    Thank you for your reply.  What you suggest makes sense and the figures all work (ie:  the difference between the net pay before and after is the same as the amount repaid). 

    My concern is,  if I alter the payslip,  the amount on my bank statement will be different to the amount in Reckon.  Hence, how do I reconcile?

    Jo

  • Lynne_8946547
    Lynne_8946547 Member Posts: 93 ✭✭
    edited February 2020
    The difference should be what the employee paid you back. When you bank that money or if it was a bank transfer you don’t have to put it anywhere in Reckon. Your original wages payment less the employee repayment in the bank account should now match Reckon
  • Jo Arnold
    Jo Arnold Member Posts: 87 ✭✭
    edited February 2020
    Thank you Lynne.

    It worked!!

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