4.03 Payroll EOY Procedures Checklist
1. Enter your last pay run for the current financial year.
2. Print weekly dissection report.
3. Print weekly summary report.
4. After balancing weekly pay
5. Update pays to the general ledger.
6. Print Monthly summary report.
7. Print Monthly dissection report.
8. Reconcile monthly pays to general ledger
9. Do a payroll end of month.
10. Print YTD Summary report.
11. Print YTD Dissection report.
12. Print PAYG Payment Summaries. Create ATO file, check file for validation errors, if no errors found proceed to 13 OR 14.
13. Create ATO file and complete appropriate magnetic media form to accompany file to ATO if sending via mail.
14. Upload EMPDUPE file to the ATO via the website portal.
If all correct, do Payroll End of Year.
Payroll PAYG Payment Summary Print Instructions
The following pages are an outline of how to prepare and lodge employee PAYG summaries from Paymate.
The Australia Tax Office will not accept certain characters in some fields so you may need to change some of the data in your system (tax file numbers, address details, etc.) before you are able to send them the file. Please find below some of the details on what is required by the Australian Tax Office to ensure the file is accepted. For a full list of details please contact the Australian Tax Office.
There is a button on the PAYG Payment Summary option to check data for errors but it will NOT locate all of the errors in the file. The Australian Tax Office will only accept Plain Paper PAYG Payment Summaries if you create a file and send it to them.
PLEASE NOTE: PAYG Payment Summaries process MUST completed BEFORE a Payroll End of Year is done. A Payroll End of Year can NOT be reversed as the data is purged from the current year file.
Before you can print your payment summaries please read the instruction below to ensure that you have setup all master files correctly.
VALIDATION RULES SET BY THE AUSTRALIAN TAXATION OFFICE
Address Details - Please ensure that only the following characters are used in the address details. A-Z, 0-9, space & / apostrophe, ", and hyphen. Please make sure that there are no full stops. Suburb, state and postcode details are to be in correct fields not in the first address line.
Tax File Numbers - Must contain numbers only. No Spaces or other characters. E.g. 123-456-789 is not acceptable. It must be 123456789
ABN - No spaces. Numbers only
If you report to the Australian Taxation Office via the website portal, you are able to check the EMPDUPE file for validation. If you do not use the web portal, you can download a program from the ATO web site to test the data fully to make sure that it will be accepted. The web site address to download this program is - http://eci.ato.gov.au/download/download.htm
Please read the details carefully to ensure you understand how to download the information.
Setting Up to Print the PAYG Payment Summaries
1. Employee Master File - You must have a surname and first name entered for all of your employees. To do this, go into your employee master file, display on your employee, edit the details and put the surname and first name in.
2. Additions / Deductions. You must ensure that all of the additions / deductions that you wish to show on the PAYG Payment summary have been selected to show. To do this, go into your additions / deductions master, display on the record and make sure that there is a tick in the box next to the words ‘Show on PAYG Payment Summary’. A list of allowances to show on the PAYG can be obtained from the ATO website.
3. Pay Types – Three new record types have been added to your system. These are –
- FBT – Reportable fringe benefits amount.
- CDEP - Salary or Wages paid to the payee from a Community Development Employment Project wages grant.
- Other - Amounts of exempt income and / or foreign source salary and wage income.
These pay types must be selected to not show on the PAYG Payment summary. If they are selected to show and they are after tax allowances, they will show on the allowance section of the PAYG Payment Summary as well as in the separate dollar figures on the form. For more information on these types of pay types, please contact the ATO.
4. Company Master File – You will need to enter a branch number. The branch number is the number that you are supplied by the ATO if you have one business but multiple branches. Each branch has a different branch number. If you are unsure about this please contact the ATO. You can enter the branch number in the company record in the utilities menu.
What you will see on the PAYG Payment Summaries
Year Ending – You will enter this information in when you print your PAYG Payment summaries.
Payer’s ABN – Will be your company ABN number. This will come from your company master file.
Branch Number – Will be your company branch number. This will come from your company master file. If you do not have a branch number, enter 001.
Payer’s Name – Will be your company name. This will come from your company record.
Reportable Fringe Benefits Amount – The amount that will print here will be calculated from the additions / deductions entered for the record type FBT for an employee. This amount will only print if it is greater than $1000.00.
Payee’s Tax File Number – This information will come from your employee master file.
Payee’s Date of Birth – This information will come from your employee master file.
Payee’s Surname – This information will come from your employee master file.
Payee’s First Name – This information will come from your employee master file.
Payee’s Address – This information will come from your employee master file.
Period during which payments were made – This will be the employee start and end date or, the fiscal year start and end date, depending on whether the employee started/ended in the current financial year.
Total Tax – This will be the total tax withheld for the employee. This will include any extra tax you have entered in as an addition / deduction.
Total Tax in Words – This will be the total tax in words. If the tax withheld exceeds 99999.99 then you will have to hand write this information in.
CDEP Salary or Wages – This amount will come from any allowances allocated against the record type ‘CDEP’ for the employee.
Other Income – This amount will come from any allowances allocated against the record type ‘Other’ for the employee.
Allowance section – Only allowances after tax and that have been selected to show on the PAYG Payment summary will show in here. If the number of allowances exceeds 4 then the word ‘Various’ will show in here with a total amount of all the allowances after tax in the total allowance section.
Lump Sum Payments – These figures will come from your employee master file.
Gross Payments – This is the total gross payment for the employee excluding allowances entered in against the record type ‘Other’, allowances entered in against the record type CDEP and allowances after tax. If you have entered in allowances for the record type FBT or Union and you have allocated these as after tax allowances then these figures will be added to the gross payment.
Union Name – The union name will come from your employee master file.
Union Amount - This amount will come from any allowances allocated against the record type ‘Union’ for the employee.
Authorised Person – You will enter this information in when you print your PAYG Payment summaries. Please check with the ATO to see if you can print the name or if you will need to sign the forms.
How to Print PAYG Payment Summaries
After ensuring that all of your master files have been setup correctly you can now do a test run of your payment summaries.
To do this –
- Select the option in the reports menu called Payroll PAYG Payment Summary and the screen above will display. You have the ability to select the company and the employee or all.
- Check the data for errors. This will compile a list of possible errors that will need to be fixed before a file can be created for the ATO.
- View report. This will display the report generated in 2 above.
- File Validation Information - on screen summary of ATO validation requirements.
- Enter the year ending date and select to print on A4 paper. You can either print or preview this information.
- Check to ensure that each PAYG Payment Summary is correct for each employee. You can print these as many times as you like, up until you create the final file for the ATO and do a payroll end of year.
- Once you are happy that all of the PAYG Payment summaries are correct you can print them on plain paper.
- Create file to send to ATO, via the ATO website portal or via magnetic media.
Create a File to Send to the ATO
The file name of the file that goes to the ATO must be EMPDUPE.Ann.
The nn=the file number. Eg. if you only have one file that is to be sent to the ATO the file name will be EMPDUPE.A01. If you have more than one file then you will need to change the file name of the second file to EMPDUPE.A02, and the third file will be EMPDUPE.A03 etc.
The file will be saved into a directory within the Transmate directory called ATO_FILES. You will need to copy these files to a disc and send them to the Tax Office or upload directly via the ATO website portal.
The Australian Tax Office will only accept Plain Paper PAYG Payment Summaries if you create a file and send it to them.
Alterations can be made to the PAYG summaries if the information is found to be incorrect, by altering them in the utilities menu, in the option called YTD Adjustments.
You MUST print the payment summaries BEFORE you do a PAYROLL END OF YEAR. If you do an end of year before you print the PAYG payment summaries it cannot be reversed and you will not be able to reprint the summaries.
End of Year
The end of year option will close off the current year and roll over into the next fiscal year. An end of year cannot be done if there are still transactions for that fiscal year waiting to be updated to general ledger. Each company must be done individually. The end of year option must only be done at the close off time for the year and only done once.
Do not forget to do your END OF YEAR before you enter pays for the new financial year.
PAYROLL END OF YEAR CANNOT BE REVERSED. PLEASE ENSURE ALL PAYROLL DATA IS CORRECT BEFORE PROCEEDING.
Please contact the Australian Taxation Office for further information on creating your PAYG Payment summaries on Disk.
Norcom Information Technology Pty. Ltd. will not be held responsible for invalid data files sent to the Australian Taxation Office.