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Jen65's avatar
Jen65
Trusted Cover User
3 years ago
Solved

Payroll EFY 20/21

Hi, question in relation to the end of financial year.

 

I have payroll that ends 25/6 for this finanical year, but i also have an employee leaving us and his payment goes into the next financial year week ending 2/7/21 and hence being paid in the new financial year.

 

Can I still do his payroll if I have not rolled over to the next financial year 2021/22 ? or do i need to reconcile and end the financial year beforehand ???

  • Tracey_H's avatar
    Tracey_H
    3 years ago

    Hi Jen65 

     

    That's correct, any pays you process with a payment date on or after 1 July 2021 will automatically go into the 2022 payroll year. You'll still be able to go back and finalise 2021 after entering pays in the new year.

     

    Great tip by vidario too, you will need to change the super guarantee rate and make sure it's correct when processing any pays in different years.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

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  • Tracey_H's avatar
    Tracey_H
    Former Staff
    3 years ago

    Hi Jen65 

     

    Thanks for your post. Having a look at your account I can see that you are using the latest version of AccountRight, which means that you don't close the payroll year anymore. We made changes to the end of year payroll processes in the 2020.2 update which was released in May 2020. Those changes included the removal of the need to close the payroll year and tax tables now automatically update. 

     

    This means that you can process pays and make adjustments in the previous payroll year. The software will use the correct tax table based on the payment date selected when processing the pay. You won't be able to process pays with a payment date in July until the 1st July due to those automatic updates that will happen in the background.

     

    I also just wanted to clarify that closing a financial year is a different process to closing the payroll year. Closing the financial year is generally not done until the accountant has lodged the tax returns, provided any EOFY adjustment journals and advised it's ok to close the year.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

    • Jen65's avatar
      Jen65
      Trusted Cover User
      3 years ago

      ThanksTracey, so im all good to process the new payroll on the 1/7/21 and I assume this will not affect STP as it will also go into the new financial year 2022 even though I have not done the EFY Finalisation in the 2021 year ?

      • Tracey_H's avatar
        Tracey_H
        Former Staff
        3 years ago

        Hi Jen65 

         

        That's correct, any pays you process with a payment date on or after 1 July 2021 will automatically go into the 2022 payroll year. You'll still be able to go back and finalise 2021 after entering pays in the new year.

         

        Great tip by vidario too, you will need to change the super guarantee rate and make sure it's correct when processing any pays in different years.

         

        Please let me know if you need further help.

         

        If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

  • vidario's avatar
    vidario
    Experienced Cover User
    3 years ago

    Please note also, that the payment on 2 July will be made at the new higher Super rate of 10% :)