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End Of Year Reconciliation

This document will assist you in reconciling your payroll for End of Year processing and Payment Summary printing.

Getting There:

[ SC / Payroll / *]

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The following examples are based on the 2009 Tax Year for the year ending 30 June 2009. The same procedure may be used for any tax year by adjusting the dates and the Tax Year accordingly.

Adjusting the Calendar for the Next Financial Year

One of the first things to setup are the details of the Group and FBT periods for the next financial year. You may enter the details for the forthcoming financial year at any stage, you do not have to wait until the current Financial or FBT year pass.

period control

To access the above screen: [ SC / Payroll / Parameters / Tax Periods].

From the “System Codes” menu select “Payroll / Parameters / Tax Periods”. For the Tax Category of “Group” select the next “Tax Year” and specify the start and end dates. Please note that the PAYG payment summary format matches the formatting show above, and the Tax Year matches the entry.

You need to define an entry for the GROUP (tax) period as well as one for the FBT year.

 

  • A new option has been added to exclude the printing of the 2nd page of the employee PAYG form. Select the option to indicate that you do not want a 2nd page printed.

Company Controls

The following items relate to each of your configured companies and are necessary for the purpose of the creation of the EMPDUP file.

 

To access the above screen: [ Administration / Company Controls].

The information on this page will be used on the PAYG form to your employees as well as the details of the EMPDUP file that you send into the ATO. Enter the correct details as they pertain to each of your companies for which you are submitting an EMPDUP file to the ATO.

XX

 

Month to date processing

Payroll Report

The payroll reports provide you the ability to report on any employee payments created throughout this financial year. You may refer to these as you proceed through the PAYG Summary Reporting (below).

To access the above screen: [ NAVIGATOR / Payroll / Payroll Reports].

 

  • As an example: “YTD Values by Employee”
    Will show all payments to employees including allowances that will not show on the PAYG Payment Summary eg expense reimbursements.

 

Earning Codes

Earning codes are the mechanism through which PowerForce determines how employee payments are categorised for the purpose of ATO reporting. It's important to ensure that the earning codes are configured to accumulate into the correct PAYG attribute, as per the image below:

earning codes The PAYG Payment summary box entry determines where the individual code will appear on the PAYG form.

To list the details of your earning codes, from the payroll reports menus, run the payroll Codes report: [ NAVIGATOR / Payroll / Payroll Reports / Payroll Codes]. The report should look similar to the sample below.

In the report(s) review the �GC Box� column to make sure the appropriate box is selected for each code. The �GC Box� value indicates which Payment Summary box will be used to record this earning code.

earning codes

 

If a code need to be changed, go to the “System Codes” menu and select “Payroll / Earning Codes / Earning Code Type”, where   “Earning Code Type” may be any of the following windows:

   Earning Codes
   Allowance Codes
   Holiday Leave Codes
   Long Service Codes

  • earning codes
  • To access the above screen: [ SC / Payroll / Earning Code / Earning Codes].

    • Select the correct “PAYG Payment Summary box” value for the desired “Earning Code”.

    Recalculate YTD earnings

    If for any reason you have had to change the configuration of an earning code, you may do a bulk re-calculation of everyone's payroll via the "Calculate YTD Earnings" form (below).

    To access the above screen: [ SC / Payroll / Tools / Calculate YTD Earnings].

    For each company that you need to process - Select the company
    Select the tax year that you are reconciling (2009 in this instance)
    Select “Rebuild All” to include all employees (or you may choose an individual employee).
    Click Save to recalculate the YTD earnings and save the values

     

    PAYG Payment Summary Reports.

    From the “Navigator” select “Payroll / Group Certificates” to open the “Process PAYG Payment Summaries” window and run the reports listed below.


    NOTE: All reports must be run to ensure data integrity prior to creating the payment summary and ATO file in step 6

    To access the above screen: [ NAVIGATOR / Payroll / Group Certificates].

    . Missing Mandatory Data Report
    This report will show any missing data that is required to print payment summaries eg Tax file number, address. The data must be entered and the report reprinted until there are no employees reported.
    . Reconciliation Report – YTD
    This report will show all amounts that will be printed on the payment summary for each employee.
    . Reconciliation YTD of Pays
    This report compares totals paid to employees through payroll with YTD totals. Any differences on this report must be found and explained or corrected OR Reconciliation Differences Only
    This report is the same as the one above but only shows employees with a difference between the two totals
    . Termination Pays in Tax Year
    This report will list all termination pays processed through the system.
    . When results are correct process
    A.     Print Summary by Employee Id OR Print Summary by Surname
    B.      Create file for Tax Department (EMPDUP).

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    Checking your EMPDUP file

    The ATO in promoting the electronic submission of taxation processing have made available their software upload tool, which you can find at the following link: Electronic Commerce Interface Software.

    If you download this software you will be able to submit your EMPDUP file to the ATO electronically, and more importantly you will be able to verify the EMPDUP file created for submission. PowerForce will continue to offer to verify the EMPDUP file for you, but we will charge a nominal fee for the service.

    See Also