Self employed company director has reported incorrect wage figures weekly for himself by overstating his wage for the past 6 months. Can a negative pay be processed?

Hi graham2,

Yes, you can process a negative pay to reverse or adjust the earnings that the company director has reported so far.

In this situation, the first step I would recommend is to run a Detailed Activity Report to identify how much he has overpaid over the last 6 months, and from there, work to reverse those figures.

To do this: 

1. Select Employees, then select the Reports tab.
2. Select Detailed Activity Report under the Payroll column.
3. Enter the date range, then select Run Report.
4. You will be presented with an expandable list of employees, and their total earnings over the time period. By selecting the director's name, you can see the breakdown of each pay run's earnings and a link to each pay run.
5. Select Download to download a copy of the report (optional).

After you have noted down the figures, create an ad-hoc pay run to begin adjusting the earnings.

1. On the Employees page, select New Pay Run.
2. Select the main pay schedule. Pay period ending date can be the date of the next pay run or the date of the last pay run where you noticed the incorrect wages.
3. Tick Manually add employees to this pay run and Create pay run with empty pays.
4. Select Create.
5. Once the pay run is created, select Add some employees, then add the director's name.
6. Select the director's name and select the Actions button, then select Add earnings. 
7. Select the earnings from the drop-down menu, then in the Rate field, enter a negative adjustment amount. Select Save when done. The pay run will now have negative earnings. 
8. Finalise the Pay Run and lodge with the ATO if the company is reporting payroll through Single Touch Payroll.

Hope this helps!

Bonny