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AL1973AL(Initiate)Initiate
24 May 2024

we have one current staff who was erroneously overpaid by as much as $10k last year (FY 2022-23) and this year (FY 2023-24) by $6k. This was due to the wrong pay rate calculated by our system. he was already informed about the matter, and he's wants to settle it but unfortunately, it's dragging for more than 2 months now and still no commitment from him. my question is, even if this is still outstanding, can you please advise if we need to correct his tax certificate for FY 2022-23? how about FY 2023-24? and also about the Super Guarantee. we paid overpaid him as well. can we still claim it back his SG super?

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1,566 views
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TOFAprincess(Newbie)Registered Tax Professional
24 May 2024

The ATO website has a good page on what to do in the situation where an employee has been overpaid (both where the overpayment relates to a previous financial year and the current financial year). It also has guidance in relation to the impact on your employee.


ATO Guidance


On your specific question about when to reissue the PAYG Payment Summary, the ATO webpage says "You should issue an amended payment summary to the employee when you discover an overpayment." However, until there is agreement as to how/when the employee will repay the amount, I don't think you can say it is certain that it will be repaid and you don't proceed to this section of the guidance. It is only once there is repayment (or clear agreement to repay the amount) that you trigger the obligation to amend the payment summary. Until that time, it is not clear that the employee will repay the amounts.


The terms on which you can recover (or agree to recover) are employment law questions for which you should seek advice.


I'm not sure about the SG provisions so can't help on that part of the question.

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Most helpful reply

TOFAprincess(Newbie)Registered Tax Professional
24 May 2024

The ATO website has a good page on what to do in the situation where an employee has been overpaid (both where the overpayment relates to a previous financial year and the current financial year). It also has guidance in relation to the impact on your employee.


ATO Guidance


On your specific question about when to reissue the PAYG Payment Summary, the ATO webpage says "You should issue an amended payment summary to the employee when you discover an overpayment." However, until there is agreement as to how/when the employee will repay the amount, I don't think you can say it is certain that it will be repaid and you don't proceed to this section of the guidance. It is only once there is repayment (or clear agreement to repay the amount) that you trigger the obligation to amend the payment summary. Until that time, it is not clear that the employee will repay the amounts.


The terms on which you can recover (or agree to recover) are employment law questions for which you should seek advice.


I'm not sure about the SG provisions so can't help on that part of the question.

Liked by noreenchen
Deb_ATO(Community Support)Community Support
27 May 2024

Hi @AL1973AL


Thanks @TOFAprincess great info.


I can help with the SG question. If you've made payments of SG incorrectly to a superfund and they've been accepted by the superfund you can ring them up directly to request a refund. Or if the employee is still working for you these payments may be taken into account for future quarters.

Check out our further info on SG contributions.

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Recovery of overpayment of Wages & Super from previous year & this current year | ATO Community