Recover an Overpayment

!If an overpayment is identified in the same financial year it is paid, the employee will only need to repay the net amount of the overpaid amount. The net amount is the amount received by the payee. You will require written consent from the Employee to deduct an overpayment from their pay. Read Overpayment identified in the same financial year on the ATO’s website.

!If the overpayment needs to be corrected in the same BAS/ITW Period, please ensure the Payment and Period Ending Dates are changed to the last day of that month.

1. Process an out-of-cycle Pay Run to calculate the NET overpayment
2. If you have decided to recover the overpayment
   1. Add an Overpayment Deduction
   2. Assign the Overpayment Deduction to the Employee
3. If you have decided you are not going to recover the overpayment,
   1. Add a Debt Waiver Fringe Benefit

!If an overpayment is identified in a different financial year it is paid, the employee will need to repay the Gross amount of the overpaid amount. The Gross amount is the amount calciauted for the Employee before PAYGW is deducted. You will require written consent from the Employee to deduct an overpayment from their pay. Read Overpayment relates to a previous financial year on the ATO’s website.

1. If you have decided to recover the overpayment
   1. Add an Overpayment Deduction
   2. Assign the Overpayment Deduction to the Employee
2. If you have decided you are not going to recover the overpayment,
   1. Add a Debt Waiver Fringe Benefit