Correcting an Underpayment

To correct an underpayment, all you need to do is create an adjustment pay with the amount that the employee should have been originally paid. Then, when you generate a payment batch for the adjustment pay, MYOB Acumatica automatically works out the difference between the original net pay and the adjustment net pay.

However, if you’re adjusting a pay because the employee’s bank details changed, you need to make a manual payment to the new bank details. This is because there is no difference between the net pays of the original and the adjustment, so MYOB Acumatica won't automatically create a new payment batch.

Generating Payments to Correct an Underpayment

1. When you're ready to pay the employee the adjusted amount, go to the Pay Run Details (MPPP3120) form for the positive adjustment pay.
2. On the form toolbar, click the three dots icon (...) and choose Generate Payments.
3. The Generate Payments window lets you know that the adjusted pay has a higher net pay than the original net pay. Click OK.

(Australia) Reporting and taxing top-up payments

If correcting an underpayment in:

• the current financial year, you must report it as part of the employee's gross and tax it as back pay. To do this, you need pay items where the taxation type is back pay. The payment can be processed as an ad hoc pay or as part of the next pay run.

• a financial year, report it as lump sum E, not gross. The year it came from is also meant to be reported too, as this employees claiming tax off sets due to lump sum in arrears payments. For more details, see Lump sum payment in arrears tax offsets on the ATO website.