Skip to content

Fixing a pay

How you fix a pay depends on what needs fixing and whether or not you've paid the employee.

If you've already paid the employee, it's often easiest to adjust the employee's next pay to correct any mistakes. But if it's an urgent fix, you can record an unscheduled pay to make an adjustment.

If you need to fix a termination pay, see Fixing an ETP. If the pay you need to fix is in a finalised payroll year, see Changing a pay after finalising with Single Touch Payroll

Here's a quick overview:

How fixing a pay affects STP

With STP, your employees'  year to date  (YTD) figures are sent to the ATO after each pay run. So if fixing an employee's pay affects their YTD figures, the updated figures will be sent to the ATO the next time you do a pay run.

To learn more about your STP reporting obligations for pay corrections, visit the ATO website.

What needs fixing?

We'll cover the most common scenarios, but you'll find the same approach can be used to fix most payroll mistakes. If your situation is a little more complex, or can't be easily fixed, you might need help from your accounting advisor.

I've overpaid or underpaid an employee

I've already paid the employee

Have a chat with the employee about their preferred solution. Also check the Fair Work requirements on overpayments. If the employee agrees, you can adjust their next pay to cater for an overpaid amount.

If you've underpaid the employee and they want to be paid the difference straight away, you can record an unscheduled pay for the underpaid amount.

I haven't paid the employee yet

If you have only recorded the pay in MYOB but you haven't actually paid the employee, you can simply delete or reverse the pay and record it again.

I forgot to pay leave

I've already paid the employee

Have a chat with the employee about their preferred solution. Usually it's easiest to include the leave in the employee's next pay. If the employee also gets leave loading, you can record an unscheduled pay to pay this amount and to adjust the employee's leave balance.

Under Single Touch Payroll, leave payments are reported separately to the ATO. The solutions below ensure the leave payment is reported correctly to the ATO.

I haven't paid the employee yet

If you have only recorded the pay in MYOB but you haven't actually paid the employee, you can simply delete or reverse the pay and record it again to include the leave payment.

I've paid the wrong type of leave

I've already paid the employee

If you've paid sick leave instead of annual leave, or vice-versa, it's easy to fix in the employee's next pay. If the employee is owed leave loading, you can include this in their next pay, or you can record an unscheduled pay to pay this amount and to correct the type of leave you've paid.

I haven't paid the employee yet

If you have only recorded the pay in MYOB but you haven't actually paid the employee, you can simply delete or reverse the pay and record it again to include the correct leave payment.

I've paid the wrong amount of leave

I've already paid the employee

If you've paid an employee the wrong amount of leave, it's easy to fix in the employee's next pay. This ensures the employee's leave balance is adjusted accordingly, and the correct information is sent through to the ATO in your STP reporting.

Incorrectly paid leave loading?

If you've paid leave loading when you shouldn't have, it means the employee has been overpaid. You can fix this in their next pay by entering the number of hours leave loading they were paid as a negative number in the leave loading wage pay item. This will reduce their total pay.

I haven't paid the employee yet

If you have only recorded the pay in MYOB but you haven't actually paid the employee, you can simply delete or reverse the pay and record it again to include the correct leave payment.

I've paid an amount against the wrong pay item

Maybe you paid a meal allowance instead of a tool allowance. Or perhaps you paid a bonus instead of an allowance. For all scenarios like this, if you've already paid the employee you can fix it in the employee's next pay, or in a separate (unscheduled) pay.

All you need to do is remove the amount from the wrong pay item by using a negative value, and add the amount to the correct pay item using a positive value. The net pay will remain unchanged, but the amount will be recorded against the correct pay item – and reported correctly to the ATO.

To ensure you meet the requirements of Single Touch Payroll reporting, it's important that you use the correct pay items in your payroll.

I haven't paid the employee yet

If you have only recorded the pay in MYOB but you haven't actually paid the employee, you can simply delete or reverse the pay and record it again using the correct pay items.

Can I just delete or reverse the pay?

Sure you can – but it might not be the best thing to do, and might actually make things worse. For example, if you've already paid an employee then you delete their pay, your payroll information in MYOB won't match what's actually happened. Instead, you should adjust the employee's next pay.

Check the scenarios above to work out the best action to take.

The only time we'd recommend deleting a pay is if you've just recorded it and no payment has been made.

If you need to delete an entire pay run, you'll need to repeat the steps below to delete all pays within the pay run.

FAQs