If you've paid an employee too much or not enough, you can:
- adjust the employee's next pay, or
- process a separate pay for the adjustment.
Single Touch Payroll will report year to date information only to the ATO, so your adjustment will be sent to the ATO as part of the next payroll.
To Fix an overpayment
To adjust the employees next pay
When you process the next pay for the employee, reduce the hours or amounts for the wage category that was overpaid.
For example, if you've overpaid an hourly-based employee 8 hours of normal time, reduce the Base Hourly wage category on their following pay by 8 hours.
Similarly, if you've overpaid a salaried employee $100, reduce the Base Salary amount on their following pay by $100.
To Process a separate pay for the adjustment
Start a new pay run for the employee and enter the adjustment as a negative (-) amount in the Hours or Amount column of the category that was overpaid. Remember to zero out all the categories that you're not adjusting. The net pay amount should be equal to the overpayment, and shown as a negative amount. You can also use the Memo field on the pay to enter a note about this payment.
For example, if you've overpaid an hourly-based employee 8 hours of normal time, record a pay with -8 hours in the Base Hourly wage category.
Similarly, if you've overpaid a salaried employee $100, record a pay with -$100 in the Base Salary wage category.
To Fix an Underpayment
To Adjust the employee's next pay
When you process the next pay for the employee, increase the hours or amounts for the wage category that was underpaid.
For example, if you've underpaid an hourly-based employee 8 hours of normal time, increase the Base Hourly wage category on their following pay by 8 hours.
Similarly, if you've underpaid a salaried employee $100, increase the Base Salary wage category amount on their following pay by $100.
To Process a separate pay for the adjustment
Start a new pay run for the employee and enter the adjustment amount in the Hours or Amount column of the category that was underpaid. Remember to zero out all the categories that you're not adjusting. The net pay amount should be equal to the underpayment. You can also use the Memo field on the pay to enter a note about this payment.
For example, if you've underpaid an hourly-based employee 8 hours of normal time, record a pay with 8 hours in the Base Hourly wage category.
Similarly, if you've underpaid a salaried employee $100, record a pay with $100 in the Base Salary wage category.
Using Single Touch Payroll?
Only year to date (YTD) amounts are sent to the ATO as part of Single Touch Payroll reporting. If your pay adjustment affects YTD amounts, the updated amounts will be sent with your next pay run.
Any other issues with correcting a payrun in MYOB? Contact us for some expert friendly payroll advice!
For more information about how STP read our comprehensive STP guide. It covers everything including how it will affect your business, how to set it up in Xero or MYOB, and how to fix filing errors.
