To reverse an ETP payment, you use Manual Calculation Subtract. The steps below are based on the assumption that all of the ETP needs to be reversed. If only a portion of the ETP needs to be reversed, you will need to calculate the portion of the ETP and the ETP Tax.
Find the ETP and ETP Tax amounts
Go to Common, IQ and select IQB-RET001 - Payroll Employee Transaction Details (Report).
In the Parameter screen, enter 1 in the Value field for Include Terminated. 1 is True, so it will include Terminated employees when it extracts data.
In the Period End Date From and Period End Date To, enter the Period End Date in which you paid the Termination and click OK.
When the data appears in the grid, filter on Employee Code, so that you can only see the employee in question.
Using the Pay Comp/Add Ded Desc field, find the line that contains the ETP (Term ETP - Taxable (Post June 83) or Term ETP - Tax Free (Pre July 83)).
Take note of the values in the Amount and Termination Tax columns. You also need to note the Code that is at the end of the data in the Transaction Type column. Note: if the component is Term ETP - Tax Free, there shouldn't be anything in Termination Tax.
Close the IQ report.
Reverse the ETP in Manual Calculation Subtract
Go to Payroll, Transactions, Processing, Manual Calculation.
Select the Employee.
Click Subtract, this will untick Generate Payment.
Select Termination Component from the Pay Summary and click Add.
From the Component drop-down, select the ETP component you found in the IQ.
Enter the amount from the IQ in Value, the Termination Tax in ETP Tax and the Code in ETP Summary Code.
Select Tax (Incl Adjust), click Add and enter the amount of the ETP Tax in Value.
Click Process to save the transaction.
The above steps will reverse the payment from the employees' transactions, i.e. reduce the ETP amount in STP Reporting. However, they won't recover the cash from the employee. If the employee isn't returning the money but you are recovering the money from the next payment, you can use a deduction after tax to do this. You would enter the Net Pay amount from the Manual Calc Subtract above into the next pay. For more information on this, please refer to Scenario 2 in the article Recover an Overpayment.