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.

Process an out-of-cycle Pay Run to calculate the NET overpayment

1. Click Pay Day > Process Pays > Individual Employee or
   Click Pay Day from the Side Bar.
2. Navigate to Payment Date and change to the current date
3. Navigate to Period Ending Date and change to the current date
4. Double click on any employee that is to be included in this out-of-cycle Pay Run.
5. An alert will display: Pay Run Dates have been changed. Please choose one of the following options.
6. Select Change Payment Date to xx/xx/xxxx and Current Period Ending Date to xx/xx/xxxx.
7. Click Click here to Continue.
8. When composing the Employees Pay,
   1. Ensure ALL Ordinary Pay Rates, Allowances and Deductions are removed, UNLESS you need to also pay them.
9. Click on the next vacant pay line.
10. Select the Pay Type which was overpaid in the previous Pay Run.
11. Enter a negative QTY equal to the amount of the overpayment.
12. Make any other changes as necessary.
13. Click Pending or OK to save all changes.
14. Read here preview, print or export the Pay Run Reports
15. Read here post the Pay Run,
16. Read here to submit your Pay Event to the ATO

Add a Debt Waiver FBT (Fringe Benefit Tax) Deduction

1. Click Pay Types > New Deduction or
   Click Pay Types from the Side Bar, Navigate to Pay Type, click on the drop-down menu and change to Deduction then click New.
2. In Description, enter Debt Waiver
3. In Deducted by, select Per Lump Sum
4. Leave Amount ( $ or % ) empty.
5. Select Variable Deduction Amounts from Employees
6. Leave STP Code as Not Set
7. Select FBT.
8. Select Factor of 1.8868: Benefit provider is not entitled to claim GST credits
9. In Type. select 13 – Debt waiver
10. Click Save then Exit.

Assign the Debt Waiver FBT (Fringe Benefit Tax) Deduction to the Employee

1. Click Employees > Edit Employees or
   Click Employees from the Side Bar.
2. Select the employee to edit (click once to highlight).
3. Click Edit > Pay Run > Pay Setup – Basic > Setup Variable Deduction.
4. Click New.
5. Select Debt Waiver from the drop-down menu.
6. Enter the Amount per Pay to be deducted.
7. Enter the Total Amount to be deducted.
   1. Once the Total Amount has been reached, no future deductions will be debited.
8. Click Save then Exit.
9. Click Save then Exit again to close the Employee window.

Process your Pay Runs

1. Read here to continue processing pay runs as normal, including the new Deduction