Amount in Lump Sum A instead of Lump Sum D
Hello. Just realised I made a blunder in December last year (2020). I paid an employee redundancy pay when he left the company and I incorrectly assigned it to Lump Sum A instead of Lump Sum D. His his tax agent worked out that it should have been in Lump Sum D and a TAX FREE payment however he is now having trouble with Centrelink re his income declaration. I need to fix this. I presume I have to 'remove finalisation' but then what to do?? It is in last years payroll year so am presuming I can not go back and fix it?? Help please! Many thanks!
Thanks for your post. In the latest versions of AccountRight you can process adjustments in the previous payroll year. So after removing the employee's finalisation in the Payroll Reporting Centre you will need to remove their termination date from their employee card and make them active again.
You can then reverse the incorrect pay and reprocess the final pay correctly. Once that's done, check the employee's Summary of payments report (Payroll reporting centre>>EOFY finalisation tab>>click on the ellipsis for that employee and select Download) is correct. If it is correct you can redo the finalisation and re-enter the termination date in the employee card.
These help articles have detailed information on termination pays:
Create payroll categories for termination payments
Please let me know if you need further help.
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