As the tax year closes, there are several steps that will ensure smooth and hassle-free wind up of payroll without mistakes! The processes are the same in any software – but good records and reconciling the payroll reports to what your actual accounts say is crucial – it is never good practice to assume!
The simple Payroll Year-End steps are –
Completing the following tasks will ensure this process is successful:
- Process the last pays for the year;
- Print the key payroll reports – many cannot be generated once you roll-over a year (eg MYOB) such as super;
- Reconcile PAYG (Pay As You Go) Tax – the balance in the PAYG account at 30 June should be the amount still not paid/reported – eg month of June or April-June – depending on whether you report monthly or quarterly;
- Reconcile Super the same way – the amount in the account at 30 June depends on monthly or quarterly reporting/payments;
- Identify workers under labour hire arrangements;
- Print Payment Summaries;
- Back up the company file;
- Close the payroll year;
- Load new payroll tax tables;
MYOB – have a great detail on the steps HERE.
Important Notes – some important parts of the steps include comparing the reports from Employee Activity with the Employee Register – why? Because they draw their data from 2 different sources – Activity is the ACTUAL pay slips, Register is the amounts in payroll history that are updated on the employee card – both should match. The Register is important also because it is the data used to compile the Payment Summary – so ensure they are right!
Reckon/Quickbooks – their payroll year-end is HERE for 2011 onwards, or HERE for 2007/8 (click the 7th topic – End of Year Process of Payment Summary, Magnetic Media form and EMPDUPE file creation.)
Important Notes – Where an employee has salary sacrificed their full salary over the year, modify a pay and add one cent PAYG Tax to force the employee to appear on the Payment Summary List and have a payment summary issued. There are notes further answering “what if an employees is not in the list?”
Both software – create the EMPDUPE file – it saves so much time! Save it in a new folder in your documents “Company YE13”, copy the EMPDUPE file to a CD, then download the following form (or obtain from the software in) at: http://www.ato.gov.au/content/downloads/MEI30459PSARMagMediaV8.pdf, complete it and copy it for your records, write “mailed xx/xx/xx” on it), mail the CD and form together – (address is on the form!).
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