We have a case that employee died immediately after we processed monthly on 14/04 and received full payment for April. What should payroll do to recoup the overpayment and the tax withheld from it?
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G'day @Maggiewon 👋
Follow the ATO guidance on overpayments to correct the income and tax you've reported. Be mindful of the impact on super.
You will need to wait for the legal documents to notify the official death of the employee to be advised the legal personal representative. This will advise who to notify about the overpayment (documented) as well as who to pay outstanding monies.
Deanne
Can we reduce our next PAYG to ATO so as to recover the tax withheld from the overpayment before getting the approval from the estate to recoup the payment? For example, the overpayment is 1000, tax 300, we’ll reduce next PAYG payment by 300, but won’t recover 700 until we receive the estate’s approval? Thanks.