Tip:
In preparation for EOFY there are some checks you can do to check the configuration of your system to ensure you avoid some common issues. These checks are listed in the table below along with suggested corrective actions if your configuration is not correct.
Check | Corrective Actions |
Have payees been setup with the correct payee type/employment type (Individual Non Business vs. Labour Hire)? | Where necessary, change the option in the Payee Type field on the relevant payee records from Labour Hire to Individual Non Business or vice versa. For more information, see Frequently Asked Questions. |
Have allowances been configured to report correctly through Single Touch Payroll based on the allowance type? | Where necessary, tick or untick the Show on Individual Non Business Payment Summary/ Show on Individual Non Business Payment Summary (Above Threshold)/Include in Gross Earnings options depending on whether the allowance is to be itemised or included in gross earnings for the purposes of STP reporting depending on the allowance type. For more information about ATO requirements for reporting allowances for Individual Non Business payees (including Working Holiday Makers) see Withholding for Allowances. For more information, see also Configuration of Allowances. |
Have superannuation contribution rate rules and salary sacrifice superannuation deductions been flagged as RESC (Reportable Superannuation Contribution) if and only if the contributions or deductions facilitate contribution amounts that exceed the mandatory amount required to be paid under the superannuation guarantee (SG) scheme or under an applicable industrial award or agreement? | If transactions have already been processed against a superannuation contribution rate rule or a deduction header and the status of the RESC option was configured incorrectly, a custom script may need to be run to fix the historical transactions. If you require this, please FastTrack Customer Service. |
There are specific tasks that need to be completed at the close of a financial year. The general end of financial year process is as follows:
Task | Description | Notes |
|---|---|---|
Close off the current financial year | ||
1.1 | Generate and deliver Employment Termination payment summaries for all payees who were terminated in the financial year. | This step is optional and required only if you are choosing to issue payment summaries to payees. Employment termination payments are reported through STP and therefore you are not obligated to issue ETP payment summaries to payees. |
1.2 | Import tax period information for the new financial year. | Ensure you re-login to the system after importing the tax information - you will be unable to create new pay periods for the new financial year if you do not re-login after importing the tax period information for the new financial year. |
1.3 | Close all pay batches for pay periods that end in the current financial year. | |
1.4 | Run any relevant payroll reports to check pay information for the current financial year and make any adjustments if necessary. | Specific payroll reports that may help you with EOFY reconciliation are:
You may also want to use to the Pay Enquiry. For more information, see also EOFY Reconciliation. |
1.5 | Close pay periods that end in the financial year that is or has ended. | If you optionally choose to issue payment summaries to payees, generate and deliver Employment Termination payment summaries for all payees who were terminated in the financial year before you close off the last pay period of the financial year for each respective pay group. You will be unable to generate Employment Termination Payment Summaries for a financial year once all pay periods ending in that financial year have been closed. |
1.6 | Create new pay periods for the new financial year. | |
2. | Complete the ATO reporting obligations for the closed-off financial year | |
2.1 | For each payee who has received fringe benefits for the fringe benefits year ending 31 March of the current calendar year, add details of the fringe benefit amounts to the relevant payee records. | |
2.2 | For each pay company, run the STP EOFY process to report the final pay information for the financial year. You must do this by 14 July. | If you optionally choose to issue payment summaries to payees, also generate and deliver end of year payment summaries for the closed financial year after you have finalised the financial year via STP. However, do not submit a Payment Summary Annual Report (PSAR) file to the ATO for the financial year that you have finalised via STP. |