LSL backpay rate error

Creena_9809281
Creena_9809281 Member Posts: 6
edited September 2019 in Accounts Hosted
It seems I have entered LSL backpay incorrectly and I am unsure how to correct this.  I hope my explanation makes sense.

Pay run week 1 - LSL entered with incorrect rate used (difference of 10c per hour).
Pay run week 2 - backpay entered using LSL payroll item as previous pay run (ie .rate @ .10 hours @ 40:00). This decreased the accrued leave available by another 40 and increased the YTD used by another 40.

There has since been another pay run before realising the issue this has caused.

I guess I have two questions.  Firstly, how should I have processed the LSL backpay if I couldn't update the original paycheque. Secondly, how do I correct the resulting issue and reflect the correct details on the employee's payslip for their information.

I have spoken with Reckon support who themselves weere confused. Finally after 50 mins of research they advised to edit the employee 'payroll and compensation' information under the 'Leave details' tab by decreasing the hours used by 40 then increasing the 'hours accrued per pay' by 40 and remove this after running the next pay run.  Does that sound right to anyone.

I really appreciate any help you can provide. My employer does not use an accountant so this is my only access to help.

Comments

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,366 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited September 2019
    Hi Creena

    I would suggest deleting the LSL backpay Pay & editing the original LSL Pay to the correct rate.
    Then, create/use a "clearing" bank account (in RA) to pay these out of & enter the 2 actual payments (from the bank) via "Write Chq" - from main bank account posting to the clearing bank account - as per your bank transactions.

    This will ensure the leave hours are preserved/paid out correctly.  

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Creena_9809281
    Creena_9809281 Member Posts: 6
    edited September 2019
    Thank you for your response.

    Can I do this even though we have lodged the PAYG Instalment activity statement for October?  My other problem is the manager will not allow a clearing account to be set up when processing superannuation so they will not allow one for this issue.  They also do not like making changes to a pay run once it has been paid which is how this became a problem to start with.
  • Acctd4
    Acctd4 Accredited Partner Posts: 3,366 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited November 2018

    I'm referring to creating a Clearing Account in your RA Chart of Accounts.  It zeros out upon processing as above so not sure why they would 'not allow' it if you're the person tasked with managing the transactions ?!  You asked "... how should I have processed the LSL backpay if I couldn't update the original paycheque ..."

    I was assuming the PAYGW amount would be negligible as - if I read your post correctly - the total backpay difference is only $ 4 (40 hrs x 10c ?).

    If not deleting the backpay however, I would still suggest editing the Payroll Item used in it.  Create a Net Backpay Adj Hourly-type one, setup the same as your LSL but not selected for "Inclusion in 'Every hour worked' .."  No monetary figures will be affected - eg Gross Pay, PAYGW, Super, Net Pay - this is simply to correct the LSL hours balance as it shouldn't have been depleted by an additional 40 hours if only the rate (& not hours available) was incorrect. 

    Failing that, if you’re really unable to edit or delete anything, the only option available - as Reckon suggested - is just to edit the LSL balance available amount in the employee’s record.

    Write a comment

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Creena_9809281
    Creena_9809281 Member Posts: 6
    edited November 2018
    Thank you again for your help.

    Yes, I was also talking about a RA account.  I have to seek permission for setting up many things including items and accounts unfortunately.

    The information you have provided is very helpful and will help me greatly in the future. Thank you.