If an overpayment is identified in
the same financial year it was paid, the Payee will only need to repay the Net amount that was overpaid. Net is the amount calculated after PAYGW is deducted.
a different financial year to when it was paid, the Payee needs to repay the Gross amount that was overpaid. Gross is the amount calculated before PAYGW is deducted.
An overpayment is typically corrected as soon as it is identified by processing an Out of Cycle or Missed Pay Run.
👉 If the overpayment was identified in the same financial year it was paid, you will need to view Process (Step 3) for the original pay run to confirm the PAYGW amount calculated. This will be required when completing the below.
After creating the Out of Cycle OR Missed Pay Run and selecting the required Payees,
Enter the Payees Pay as it should have been, and write down the amount displayed in PAYGW.
Refer to the PAYGW Amount displayed in the Process Page for the Posted Pay Run and manually calculate the difference between the two amounts.
Add the incorrect payments as a negative amount.
If there was a difference between the PAYGW Amounts, select PAYGW Adjustment (+/-).
Enter the Quantity as -1 and the Rate as the difference between the PAYGW displayed in the prior and current pay runs.
Then, press the TAB key on your keyboard or select the + button.
The amount displayed in Net, is the total amount the Payee is required to repay.
Continue with the Pay Run Procedure as usual.
Discuss and decide the best course of action;
If you have decided to recover the overpayment and the Payee;
Agreed to repay the Net Amount, and you have been advised the amount is;
Subject to FBT,
Add a Loan Repayment Deduction.
Select Pay Types.
Locate either Salary Sacrifice (to other benefit, OTE) or Salary Sacrifice (to other benefit) by manually scrolling through the Pay Type List, entering the name into Search or using Show Advanced Filters.
Once the Pay Type has been located, select Actions > Copy.
Change Description to Loan Repayment.
Navigate to Reportable Fringe Benefits.
Select the Other Benefit Type as Loan.
Select the Factor.
Select Save.
Add the Loan Repayment Deduction to the Payee's Pay Template.
NOT subject to FBT,
Add an Overpayment Deduction.
Select Pay Types.
Locate After Tax Deduction by either manually scrolling through the Pay Type List, entering the name into Search or using Show Advanced Filters.
Once the Pay Type has been located, select Actions > Copy.
Change Description to Overpayment Deduction.
Select Save.
Add the Overpayment Deduction to the Payee's Pay Template.
Did NOT agree to repay the Net Amount, and you have been advised the amount is subject to FBT; enter a Debt Waiver Reportable Fringe Benefit Balance for a Payee.
If you have decided against recovering the overpayment and have been advised that the amount is subject to FBT, enter a Debt Waiver Reportable Fringe Benefit Balance for a Payee.