blue

Pay Adjustments Webinar

ClockOn’s Customer Success Manager, Ben Smith, covers commonly used pay adjustments and allowances and how to apply them to your employees.

The topics covered in this webinar include:

  • Using the allowance and deduction templates
  • Performing back pay, payroll and year to date adjustments for pay periods already processed

 

A more detailed summary of what is covered in this webinar:

Pay Adjustment Prep

  1. First step is to print off all the payslips for the employees in question
  2. You Need to get the correct tax table form the ATO - https://www.ato.gov.au/Rates/Tax-tables/

1. Missed Timesheets (Edit Pay Period)

Note: Timesheets from a past period can be added in to the next payroll. Just be careful of the Tax adjustment required, it will be similar to example 3

Employee: Bar Assistant 04
Pay Period
: 7/10/2019 - 13/10/2019

Issue

4 hours was missed on Wednesday the 9/10/2019
Need to Pay the additional hours
Need to Accrue leave on these hours (Check Ruleset is Pro Rata is on or off)
NOTE: If leave is not required to be accrued run a no entitlements payroll
Need to ensure the correct tax has been calculated
Need to ensure that the correct super has been calculated

Calculations to be done

Calculate the additional gross wages amount for the missed shift
Add the missed gross wage amount to the gross wage what was paid
Using the appropriate ATO tax table to work out the PAYG tax that should have been paid
What is the difference tax paid and what should have been paid

 

Process and Allowances to be added for the next payroll

    1. Enter into Payroll
    2. Un ticking the include all employees option, select the employee and edit the payroll period to be the same as where the hours were missed.
      (NOTE: If leave is not required to be accrued tick "no entitlements payroll")
    3. Add in the timesheets that were missed
    4. Click on Allowances and add an Additional Tax allowance and back in payroll add in the tax that is needed to pay ($8 in the webinar example)
    5. Tick pay in next pay only

2. LEAVE ADJUSTMENTS

NOTE: Deductions need to be done in the next payroll to deduct the value from something

Employee: Bar Assistant 05
Pay Period
: 7/10/2019 - 13/10/2019

Issue

One day was paid as Annual Leave with Leave Loading (LL) and needed to be paid as personal leave
Need to adjust the leave balances
Need to recover the LL amount in the next payroll
Adjust any tax if required

 

Calculations to be done

Calculate the reduced gross amount (minus the LL from the gross amount)
Leave balance adjustments. Add hours to the annual leave and remove hours from the personal leave
Using the appropriate ATO tax table to work out the PAYG tax that should have been paid
What is the difference tax paid and what should have been paid
If Leave loading is being included in the super earnings base (Check the ruleset) then recalculate the super that should have been paid - Not in this example

Process and Allowances to be added for the next payroll

Before entering payroll go to the employee details screen and edit the Leave balances
- Edit the Pro-Rata columns
- Also add a note on the termination/notes tab that there was change to the leave balances
Enter into payroll for the new period. Be sure to take note of the Pay advice window before adding in the allowances, specifically the Tax
(TIP: print a payslip preview or take screen screenshot)
Add in the Allowances (Tick pay in next pay only)
- A before tax deduction (EXAMPLE NAME: Pay Adjustment from WE 13/10/19) Deduct the Amount $26.78
- A tax allowance/rebate ( EXAMPLE NAME: Tax Adjustment) Reduce tax by $8

 

3. BACK PAY ($ VALUE ADJUSTMENT)

Employee: Bar Assistant 08

Pay Period: 23/09/2019 - 6/10/2019

Issue:

2 x payrolls were paid at $21 p/hr and not $23 p/hr
Need to run a back pay and pay the additional missed wages in the next payroll
Need to ensure the correct tax is paid
Need to ensure that the correct super has been calculated

 

Calculations to be done

Calculate the additional gross wages amount for missed rate increase
Add the missed gross wage amount to the gross wage that was paid
Using the appropriate ATO tax table to work out the PAYG tax that should have been paid
What is the difference tax paid and what should have been paid
How much super should have been paid and what is the difference
NOTE: The super should calculate in the payroll that the additional amount is added unless there is Overtime and then you will need to calculate the increase in super

 

Process and Allowances to be added for the next payroll

Enter into payroll for the new period. Be sure to take note of the Pay advice window before adding in the allowances, specifically the Tax
(TIP: print a payslip preview or take screen screenshot)
Add in the Allowances (Tick pay in next pay only)
- A before tax allowance (EXAMPLE NAME: Back Pay for rate increase). The amount that needs to be paid was $110.49
- An additional tax (EXAMPLE NAME: Additional Tax) The amount of additional tax that needs to be add in was $166
NOTE for the tax adjustment: between the current payroll and the back pay amount a total of $234 PAYG Tax needs to be paid. Once the back pay is added to the current pay roles wage the tax will calculate as if the back pay was a part of the current payroll. You will need to add an additional tax amount of the difference to make up the $234 (in this example it was $137)
If there is a super adjustment then you can updated the employer contribution amount on the pay advise window
- Additional Super amount $10.5013

 

Comment

Related Post