PAYG backpay unallocated

Question

We paid PAYG for 2 under 18yr employees over a period of several weeks (some before Q1 BAS lodgement and some after) when their PAYG should have been adjusted to $0.

I have now reversed the pays and re-entered them with PAYG adjusted to $0 and reimbursed the employees in as a lump sum via internet banking. I have unreconciled the bank statement that included any affected payroll.

For arguments sake we owed the employees a total of $50:

employee A $25 in March

employee B $10 in March and $15 in April

Myob now lists that single payment of $50 as unallocated. How do I allocate the $50 payment?

Will I need to make an adjustment somewhere to allow for the $35 ATO overpayment for March?

doreen_p · Answer

Hi Enough,
&nbsp;
Thanks for your post.
&nbsp;
It's a good thing that you were able to reverse and then reprocess the pay run already. Regarding your concern about the unallocated payments showing, please confirm if you were able to receive the PAYG amount already from ATO. If yes, you will need to create a receive money transaction so you can allocate the $35 overpayment for March. Once done and the overpayment has been sent to the employees, you will then need to create a spend money transaction if you have already reimbursed the overpayment to your employees.
&nbsp;
Feel free to post again anytime if you require further assistance.&nbsp;&nbsp;If my response has answered your inquiry, please click&nbsp;"Accept as Solution"&nbsp;to assist other users in finding this information.
&nbsp;
Best regards,
Doreen

enough · Answer

Thanks Doreen,I made a BAS adjustment with the ATO so our account has a credit of $35.&nbsp; The activity statement for this month shows a balance shows a balance of less than the report for the month.&nbsp; I'll be entering the $35 adjustment in the PAYG journal entry so the accounts will balance.What account would I allocate the spend money transaction to?

doreen_p · Answer

Hi Enough,
&nbsp;
I appreciate the update. As for your question in which account you'll allocate the spend money transaction to, I'm afraid I can't provide an answer to that. As we're not allowed to provide any financial advice. It would still be best to speak with your accountant for an advice.
&nbsp;
Feel free to post again anytime if you require further assistance.&nbsp;&nbsp;
Best regards,
Doreen

enough · Answer

I’m just now re-doing the bank reconciliation. The pay reversals and re-enters are listed as unreconciled but when I select them to reconcile, it throws the balance out by the $50. The spend money transaction for the $50 is already selected as it was allocated in the bank feed.

what have I missed?

enough · Answer

Hi Doreen, following up from this problem.... creating a 'spend money transaction' as you suggested cleared the unallocated transaction on the dashboard but now the bank statements don't reconcile because the payment of $35 was already reconciled against the corrected payroll entries.

I have now deleted the 'spend money transaction' so that I could reconcile the bank statements but I'm still left with my original problem of having the $35 payment on the dashboard as 'unallocated'.

How do I clear it without affecting the bank rec?

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