Posting a Negative Gross Payroll and PAYG Adjustment

  • 1
  • Question
  • Updated 2 weeks ago
I need to adjust an employee salary in one transaction. Their gross needs to be less and reverse the PAYG applicable.

I have tried to perform a payroll with a negative gross which is achievable with one negative hour however it won't let me negatively adjust the PAYG (so take PAYG away rather than increase it).

I also need to STP the adjustment to the ATO once done.

Can anyone assist with a solution please.
Photo of Mark Cusworth

Mark Cusworth

  • 150 Points 100 badge 2x thumb

Posted 2 weeks ago

  • 1
Photo of Teagan Uttridge

Teagan Uttridge

  • 70 Points
do you mean that the pay overall will be a negative? 
Photo of Mark Cusworth

Mark Cusworth

  • 150 Points 100 badge 2x thumb
Yes, that’s correct.

Hi Mark

 

What’s the specific scenario here?

Have you already paid the/any net amount to the employee?

 

Shaz Hughes Dip(Fin) ACQ NSW, MICB

Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

Accounted 4 Bookkeeping Services

Ballajura, WA

0422 886 003

shazinoz2@bigpond.com

www.accounted4bs.com


Photo of John Graetz

John Graetz

  • 28,864 Points 20k badge 2x thumb
Mark, I am not quite clear on what you are trying to do, but it is not possible to have a pay that has a negative gross nor is it possible to have a tax figure which is less than zero, as far aw I am aware.  The only other way that you could do it would be to change the original pay to what it should have been and then have the employee pay you the difference.  That of course will change all of your payroll reports etc and your STP lodgement.  This is all possible as I have done this before.  It is messy, if you really want to do it this way.  The other way is to spread the adjustment over say two pays if it cannot be incorporated into the next pay run.
John L G
Photo of Mark Cusworth

Mark Cusworth

  • 150 Points 100 badge 2x thumb
Hi John,

Not keen on individual adjustments due to the number of pay runs involved, also I want this corrected before year end so can't spread over future pays.

The rest of the details are as per my comments below.

Regards,

Mark
Photo of Mark Cusworth

Mark Cusworth

  • 150 Points 100 badge 2x thumb
Hi Shaz,

I have used an incorrect hourly rate to pay an employee all year (weekly payrolls where the employee was paid). I have agreed with the employee to have the excess payment for the year refunded.

I would prefer to put through one bulk entry to reverse the overpaid gross amount and lower the PAYG accordingly. I need this to go through to the ATO via STP of course. This is in preference to adjusting over 50 pays individually.

I have tried to perform a negative pay run which seems to work for the negative gross if I use a minus in the hours however it will not let me adjust the PAYG as if it was being added rather than deducted.

Can this be done?

Regards,

Mark


Photo of Glenda Veale

Glenda Veale

  • 2,872 Points 2k badge 2x thumb
Not possible to do a negative pay as John mentioned above.  I would want to alter each pay as then the records of hourly rate would be correct in the employee information.  Understand this would be some work but suggest it is the correct way.  The new gross will also affect the super that is payable, so a reduced amount will be due for June.
(Edited)
Photo of John Graetz

John Graetz

  • 28,864 Points 20k badge 2x thumb
Glenda.  That would be a nightmare as you also consider that this would change information that has previously been lodged on Business Activity Statements.  That is apart from payroll adjustments which would have to be made through the general ledger and the fact that this would also change bank account related information.
Mark.  What sort of amounts are involved here with the pay adjustment and the tax adjustment?  
John L G
(Edited)
Photo of Mark Cusworth

Mark Cusworth

  • 150 Points 100 badge 2x thumb
Hi John,

The gross salary adjustment is just over -$7,000 and PAYG adjustment just under $2,000.

Regards,

Mark 
Photo of John Graetz

John Graetz

  • 28,864 Points 20k badge 2x thumb
Mark.  This adjustment is also going to affect SGC payments throughout the year.  What has been the gross pay over say each of the past pays for this month and is there enough there to be able to claw back your adjustment amount?  If you can do retrospective adjustments for the pays in this month to recover the overpayments, you will have a much simpler path to have to travel.
John L G  
Photo of John Graetz

John Graetz

  • 28,864 Points 20k badge 2x thumb
Mark.  You can ring me on 0428 695454 if you want to talk over some strategies here.
John L G
Photo of Mark Cusworth

Mark Cusworth

  • 150 Points 100 badge 2x thumb
John, I would need to go back to February pay runs from now and zero them to be able to adjust to the amount required. I have paid the super and BAS up to the end of March 2020.

Mark
Photo of Mark Cusworth

Mark Cusworth

  • 150 Points 100 badge 2x thumb
Hi All,

I have a solution from John.

Thank you all for your assistance.

Regards,

Mark