Payroll EFY 20/21

[Jen65]

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]

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.

[vidario]

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

[Jen65]

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 ?

[Jen65]

Yes correct

[Tracey_H · Accepted solution]

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.

[GayleHEH]

Hi,

I also have a question if you help me with it.

I had to do an adjustment to my payroll for 20/21 year today and we normally keep a copy of our Payment Summaries for each year.  We do use STP so ATO will be issuing these.  We just keep a copy.

Well, I have just gone back to Command Centres > Payroll > Prepare Payment Summaries and am not getting any employees in RESC or Payment Summaries for selected employees.

I have not finalised with ATO the STP for end of year.

Do you know what is happening?

[Tracey_H]

Hi @GayleHEH 

Payment summaries and STP are completely separate reporting methods, as such, you will need to go through each step in the payment summary assistant to create those summaries. It's also important to note that the information in payment summaries may be different to STP as STP uses ATO reporting categories to filter payment amounts. 

If you want to keep a hard copy of income information sent to the ATO, personally I'd recommend the Summary of Payments report. This is the STP version of the old payment summary so it's the actual information sent to the ATO through STP. You can find the Summary of payments report in the Payroll reporting centre>>EOFY finalisation tab>>click on the ellipsis (...) for the employee and select Download report.

Please let me know if you need further help.

[GayleHEH]

Thank you Tracey,

I was already aware of this.  It is only that I cannot get a hard copy of the Payment Summaries through MYOB anymore.

I did on Friday get a download of the Payment Summaries through the MYOB > PAYROLL > PREPARE PAYMENT SUMMARIES and went through the wizard and all okay.

This morning I had to put through a pay adjustment and balanced the payroll again and when I use this wizard it is not showing any employees.

I just want to print the hard copy of Payment Summaries for the adjusted employees so we have a hard copy for our records.

MYOB is not allowing me to see employees so I cannot update my hard copies.

STP is all good.  Just want a copy of the 2 adjusted employees Payment Summaries for our records.

Hope this makes sense.

Gayle

[Tracey_H]

@GayleHEH 

Hi Gayle

That does make sense. I was just trying to save you the time and effort of creating and printing the old payment summaries when the STP version has already been created and just needs to be printed. And the STP payment summary is a more accurate indication of what's been reported so better for record keeping purposes.

If you do want to print the old payment summaries this help article, Prepare payment summaries, has troubleshooting steps to help you.

Please let me know if you need further help.