Correct an Overpayment

Sharlyce Reed

Aug 08, 2024

819

🎯 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.
The Net amount is received by the payee after PAYGW is deducted.

Commence a Regular Pay Run or an Out Of Cycle Pay Run to calculate the NET overpayment, then discuss and decide the best course of action based on the repayment amount.
If you have decided to recover the overpayment, and the Payee has;
1. Agreed to repay the Net Amount, which is less than $300.00;
  1. In the same pay period as the correction - add all other required pay types to the pay run where you have calculated the NET overpayment.
  2. Over multiple pay periods - Add an Overpayment Deduction then Add the Overpayment Deduction into the Payee's Pay.
2. Agreed to repay the Net Amount, which is equal to or more than $300.00;
  1. In the same pay period as the correction, and you have determined this payment is,
    1. subject to FBT, Add an Overpayment Deduction then Add the Overpayment Deduction to the Payee's Pay.
    2. NOT subject to FBT, Add a Loan Repayment Deduction and Add the Loan Repayment Deduction in the Payee's Pay.
  2. Over multiple pay periods - Add a Loan Repayment Deduction then Add the Loan Repayment Deduction in the Payee's Pay.
3. Not agreed to repay the Net Amount;
  1. Enter a Debt Waiver Reportable Fringe Benefit Balance for a Payee.
If you have decided against recovering the overpayment,
1. Enter a Debt Waiver Reportable Fringe Benefit Balance for a Payee.

🎯 If an overpayment is identified in a different financial year to when it was paid, the Payee needs to repay the Gross amount that was overpaid.
The Gross amount is the amount calculated for the payee before PAYGW is deducted.

Discuss and decide the best course of action based on the overpayment amount;
1. If you have decided to recover the overpayment, and the Payee has;
  1. Agreed to repay the Gross Amount;
    1. If the Gross repayment is less than $300.00,
      1. Add an Overpayment Deduction then Add the Overpayment Deduction into the Payee's Pay.
    2. If the Gross repayment is equal to ore more than $300.00,
      1. Add a Loan Repayment Deduction and Add the Loan Repayment Deduction in the Payee's Pay.
  2. Not agreed to repay the Gross Amount;
    1. Enter a Debt Waiver Reportable Fringe Benefit Balance for a Payee.
2. If you have decided against recovering the overpayment;
  1. Enter a Debt Waiver Reportable Fringe Benefit Balance for a Payee.