Over payment

Options
anita Malcolm
anita Malcolm Member Posts: 2 ✭
edited June 2020 in Accounts Hosted
I have an employee who started before christmas, and has resigned recently. She wanted holiday pay advance, so it was approved. She left before her probationary period and needs to give back some of the holiday pay given, please advise how to put it in Reckon books. Anita M

Comments

  • Kris_Williams
    Kris_Williams Member Posts: 3,293 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2020
    Options
    I would redo the pay as it should have been and show the overpayment in a clearing account, when the employee repays it offset it against the same clearing account
  • anita Malcolm
    anita Malcolm Member Posts: 2 ✭
    edited February 2020
    Options
    Hi Kris,
    So would I have to redo the pay she received her advance holiday pay.
  • Kris_Williams
    Kris_Williams Member Posts: 3,293 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2020
    Options
    Yes, and enter the difference as a cheque so the bank rec will still balance. Has she paid it back yet?
  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,131 Accredited Partner Accredited Partner
    edited June 2020
    Options
    Be very careful Anita - The business has allowed her to go negative with her holiday pay - and I dont believe its lawful to now try and claw it back.  I think they will have to wear it and change their policies in the future.  You are not able to deduct anything from employees wages that is not for their benefit and clearly this would not be for their benefit.  I will try and find the correct wording around this and post here for you.
  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,131 Accredited Partner Accredited Partner
    edited February 2020
    Options
    Found this which says that some awards allow for the claw back of advanced leave?  https://workplaceinfo.com.au/payroll/leave/q-a/are-you-entitled-to-take-annual-leave-in-advance
  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,131 Accredited Partner Accredited Partner
    edited February 2020
    Options
    here is a better reference - looks like there has been a change https://www.fwc.gov.au/awards-agreements/awards/modern-awards/modern-awards-fact-sheets/annual-leave... - another day not wasted for me - hopefully your employee is under one of these awards, you have a written agreement as stated and you can claw it back as suggested above? (or just use the holiday pay item and put in a negative number? This should reduce the gross wages and put the annual leave hours back)

Categories