If you have overpaid an employee and they have returned the money, you will have to correct the employee's YTDs in WageEasy and then report the correct values in STP. Unfortunately, because banking and STP processes have been completed you cannot delete the pay slip.
The only way to correct the employee’s YTDs is to do a supplementary pay slip, reversing the gross, tax and super and then do another supplementary pay slip to show the correct values/items that should have been paid. However, before you can do that you will first need to set up an allowance which we will call Pay Adjustment.
Go to Setup, Allowances.
Do you already have an allowance called Pay Adjustment? If not, Add to launch the Allowance Wizard.
Select Standard Allowance, Next
Enter Pay Adjustment for the Description, ensure Type is set to Addition, Frequency is Each Pay, leave Amount leave blank, tick both Taxed and Include in Super Calculations, Next
Use the dropdown and select Gross on the STP Reporting screen, Next.
If using the General Ledger in WageEasy complete this screen, Next, Finish
Click Close to close out of the Allowances screen.
Ensure the correct PPE Date is selected at the top right of the main screen otherwise click on it and set it to the appropriate Pay Period Ending date.
Go to File, Maintenance, Supplementary Pay Slip and click Yes on the Warning to launch the Wages Wizard.
Select the appropriate employee from the drop down list, ensure there are no hours on the Timesheet and click Next to the Adjustments page.
Click on Allowances on the left and Add to bring up Add Employee Allowance.
Select Pay Adjustment from the Description drop down list.
Enter the gross you paid for that pay period as a negative in Amount Payable (for eg:) -$1500.00
Click OK and if you get a message, This allowance is an addition, the value should be positive. Adjust?, click No then click OK again.
Click Tax on the left and enter the tax paid as a negative.
Click Superannuation on the left and super as a negative.
Click Next to the pay slip page and ensure there are no other values on the pay slip except for those entries you made.
Click Save if all looks fine.
Run the Payment Summary for the employee from Reports, Employee and check that the Totals at the bottom are all zeros, as expected, for that Pay Period.
Repeat steps 7 to 18, this time with positive amounts to reflect the correct Gross, Tax, Super and Net that should have been paid to the employee which should also reflect in the Payment Summary report when running it again.
If the employee returned the Net amount of the incorrect payment, then an EFT Banking File can be created to transfer the correct Net to the employee’s Bank. In this case, a STP Pay Event will be created with the employee’s new YTDs and this pay event can be reported to the ATO.
If the employee returned only the excess, then there will be no EFT banking file created and it might be necessary to do a STP Update.
STP Implications:
The values reported to the ATO were overstated for this employee and will automatically correct when the employee receives his next payment and the STP Pay Event is reported to the ATO.
If the employee is not working for the company anymore, it is advisable to do a STP Update to correct the employee’s YTDs on myGov.
To do a STP Update:
Click on the STP2 button and select STP Update.
Untick All employees and select this employee only, OK.
Click on the Report to ATO button in the top right-hand side of the screen.