Non STP Payroll Period End


Introduction

Unlike many other systems, the Payroll Module is fully integrated to other BusinessCraft modules. BusinessCraft ensures that legislative requirements are met with Compliance Product Updates as needed.

Key Features include:

  • Multiple Payrolls with Weekly, Fortnightly or Monthly Payroll supported

  • Wide range of timesheet entry options

  • Tax Scales maintained by BusinessCraft automatically

  • Single Touch Payroll

  • Month and Year End Processing

  • Leave Provision Accruals (RDO, PL, AL and LSL)

  • Comprehensive Superannuation processing with Super Stream capability

  • Termination Payments including ETP

  • Payment Summaries and EMPDUPE file processing with SBR integration.

  • Awards and Shift Management

  • Payroll Rules

  • Allowances and Deductions

  • Month to Date and Year to Date Tracking of all payroll components

  • Warnings, Absences, Probation and Extra Information

  • Wide range of enquiries and reports including PAYG and Payroll Tax

  • EFT payments and ABA files

  • Pay Slips can be printed or emailed

  • Document Register

The documentation related to the Payroll Module is broken up into 6 primary Product Guides:

  • Tables & Setup

  • Maintain, Transactions & Personnel

  • Single Touch Payroll

  • Superannuation

  • Enquiries & Reports

  • Period End

Overview

The Period and Year End processes in Payroll are very important and critical to running an effective Payroll system. The processes need to be run with considerable care, particularly Year End.

Period End

It is essential to carry out the End of Month process in Payroll in a timely manner as the process carries out the following actions:

  • Clears month to date values on Employee Master Files

  • Performs a Superannuation Integrity Check and posts any required adjustments

  • Advances the Journal Number

  • Resets the Batch Number

  • Advances the Current Period and where applicable the Current Year

To carry out End of Month, go to Payroll > Period End > End of Month. A screen displays the reports that should have been run before carrying out End of Month and the Superannuation report to be run after End of Month (due to any Superannuation Integrity Check adjustments). A printer icon enables the screen to be printed for reference. Please note that some of these reports need to be limited to the required date range.

If the decision is taken to proceed with End of Month, a screen confirms the actions that will be taken. The Current Journal, Current Period and Current Cutoff Date are displayed:

If the decision is taken to continue to proceed with End of Month, the system carries out a check for any unposted transactions that need to be addressed prior to proceeding.

Once the unposted transactions have been addressed and the End of Month process is re-continued, the Payroll Leave Liability Reconciliation Report is produced:

After saving a copy of the Payroll Leave Liability Reconciliation Report, the Payroll Distribution Report is produced:

After saving a copy of the Payroll Distribution Report, the Payroll Superannuation Integrity Check Report is produced:

After saving a copy of the Payroll Superannuation Integrity Check Report, the Payroll End of Month process is complete and a confirmation message is provided:

Year End

The Year End procedure for payroll must be performed AFTER the final pay run for the current payroll year has been processed and BEFORE the next pay run for the new payroll year is processed.

Once the process is completed, no pays can be processed in the payroll year closed.

BusinessCraft will advise the required product versions to use prior to commencing the Payroll End of Year Process. It is important to update Payment Summary Layouts as advised by BusinessCraft.

The Payroll Module should be reconciled to the General Ledger prior to beginning the End of Year process to ensure that payment summaries and other output data is correct and to prevent any steps having to be repeated.

If Employment Termination Payments have been made during the payroll year to an employee, it is important to ensure that those payments have been processed in BusinessCraft in the correct manner prior to proceeding with Payroll End of Year.

  • Carry out June End of Month

Perform the standard BusinessCraft Payroll End of Month procedure for June. This is important as the Payroll module needs to be in period 7 (July) for the End of Year to be performed.

  • Backup BusinessCraft

Create a backup of the entire BusinessCraft system, including each dataset located in the xfSvr folder, the MapDr > Reports Folder and the MapDr > Printer folder.

  • Update to the required version of BusinessCraft

If not already carried out, update BusinessCraft to the required version of BusinessCraft.

  • Update BusinessCraft Standard Reports and Payment Summary Layouts

Ensure that any required reports and templates as specified by BusinessCraft are installed.

  • Update Employee FBT, EF and UPP Values for the Current Year

Go to Payroll > Period End > End of Year > Update Year End Employee Values and in the Range Criteria either enter an employee range or leave blank to see all employees.

After pressing OK, the Update Year End Employee Values screen is displayed. Enter the appropriate amounts in the respective columns for FBT, EF and UPP.

On exiting the screen, a confirmation of any employees with values entered is displayed:

The respective amounts on page 3 of the Employee Master File are updated.

  • Configure Allowances and Deductions for Payment Summaries

Go to Payroll > Tables > Allowances/Deductions and select View from the Menu Sidebar. The Range Criteria screen is displayed. Enter A in the Type field for starting and ending value to show only allowances and click OK. The Allowances/Deductions Maintenance screen is displayed:

For all allowances to be shown separately on payment summaries, ensure that a Q, M, T or X is placed in the PS Loc column. Close the screen to return to the Range Criteria screen.

Change the Type field from A to a D and click OK to show only deductions. The Allowances/Deductions Maintenance screen is displayed again. For all deductions that are to appear separately on payment summaries, enter a 1 in the PS Loc column unless it is workplace giving, in which case enter a G.

  • Check termination dates and employment termination payments

Ensure that all employees terminated within the payroll year, have a termination date within the current payroll year on Page 1 of the Employee Master file for those employees.

If Employment Termination Payments were made during the payroll year to an employee terminated in the payroll year, ensure that page 5 of the Employee Master File has been completed properly.

  • Check Payment Summary Settings

Ensure the ATO Electronic Payment Summary information is correct at Payroll > Period End > End of Year > Payment Summary Setup, pages 1 and 2.

Pay particular attention to current financial year dates, company details and Employer Type.

The ‘Employer Type’ on page 2 should be set to P if ETP payments were made, otherwise it can be left blank. However, it is recommended this be set to P regardless.

  • Run Year End Reports

Go to Payroll > Period End > End of Year > Run Year End Reports. Select a location to save the reports. Create a new folder if necessary. Ensure the files are saved in a location with suitable network permissions that can only be accessed by authorised personnel.

This routine will create a PDF of the following reports:

YTD Earnings

Taxation

Employee History Report

Leave Accrual History Log

Allowance/Deduction History

Super History Log

Once generated, the reports can be opened directly from this screen to review or optionally, print the created PDFs.

  • Print Payment Summaries (Trial)

Go to Payroll > Period End > End of Year > Print Payment Summaries. When prompted, select the Trial Run option to preview payment summaries.

Select the Payment Summary Type to print (Each Summary Type required needs to be printed separately):

The Payment Summary Parameter entry screen is displayed. Enter the required details in the Payment Summary Parameter Entry window:

Fields 1 and 2 will be printed on the Payment Summaries

Fields 3-6 are inclusion criteria. Leave blank to print for all employee

The Signature is the Authoriser’s name to be printed on the Payment Summaries. Leave blank to sign manually.

Click OK and the Payment Summaries will be displayed in the BusinessCraft Report Viewer. Print, Save or View the Payment Summaries. Cross check the figures with the Employee History and Year to Date Earnings reports that were saved/printed in the Run Year End Reports step.

All employees with Employment Termination Payments (ETP) require two payment summaries: an Individual Non Business payment summary and an ETP payment summary.

BusinessCraft uses the YTD figures on each Employee’s Master File and the Allowance/Deduction History details to create the Payment Summary. If any of these details are incorrect for any reason, then the payment summary will be incorrect.

  • Print Payment Summaries (Non Trial)

When the Trial Payment Summary figures are correct for all Payment Summary Types, repeat Step 10 but select No to ‘Is this a Trial Run?’

When the Payment Summaries are ready to be sent to employees, select ‘Yes’ to “Did all Payment Summaries Print Correctly”. If No is selected, the step needs to be repeated.

If payment summaries need to be reprinted (including if changes need to be made) after selecting ‘Yes’ this at this point, the printed flag will need to be cleared at Payroll > Period End > End of Year > Change Payment Summary/EMPDUPE Status. See the Amended Payment Summaries section.

  • Create Payment Summary Data File

This process creates the Payment Summary data in files suitable for submission to the ATO via SBR or through other methods approved by the ATO using an EMPDUPE file. The Payment Summary Data file includes data for all three types of payment summaries (Individual Non-Business, Business and Personal Services Income and ETP Summaries) so only one file is needed to be created. However, note that a separate data file is required for each dataset.

Go to Payroll > Period End > End of Year > Create Payment Summary Data File.

Enter the Payment Summary date, usually 30/06/XX or the day the summaries were printed.

Enter a File reference – usually the company name.

Leave the file extension as the default of A01.

Click OK and then click Yes to create the Payment Summary Data File or press No to Cancel.

A basic integrity check will be performed on the Employee Master data, which will highlight any errors such as the use of invalid characters in Address fields or Incorrect Year on Payment Summary Maintenance. Make any necessary changes identified by the report and recommence this step from the first point above.

A window confirming the location of the EMPDUPE file that has been created is displayed.

To submit through the Standard Business Reporting framework, press Yes. To submit via other methods approved by the ATO, press No.

To submit the EMPDUPE file via SBR, a valid AUSKEY needs to be detected on the PC used. If SBR submission is not possible, the EMPDUPE file will need to be submitted to the ATO using one of the other approved submission methods. Submitting via SBR will carry out further validation checks on line with the ATO, which may require updates to data in BusinessCraft and re-creating the Payment Summary file. Once the file has been successfully submitted, an on-screen prompt advises that the file has been successfully submitted.

  • Payroll End of Year

Once the Payment Summaries and EMPDUPE files have all been created successfully, the Payroll Module can be rolled to the next payroll year. Doing so will clear all Year to Date figures on pages 3 and 4 of the Employee Master File.

It is crucial that a working backup of the payroll year being closed is taken BEFORE carrying out Payroll End of Year, as this will be required in any instance where historical payroll data is required.

Go to Payroll > Period End > End of Year > Payroll End of Year. A Payroll End of Year prompt will appear confirming the decision to clear the information for the previous year.

Ensure the Current Journal Period is 7. Click Yes to continue with the End of Year Function.

Click No to cancel.

A second prompt will appear. Read the message carefully, ensuring that the tasks outlined have been completed. If on order, Press Yes.

A further warning prompt appears:

Click Yes to continue with the End of Year Function. Accept the following warning prompt:

To complete the final step of the rollover function, enter ‘YEAREND’ into the text field to confirm the year close. This is the last chance to stop the year end process by pressing cancel.

After clicking OK to the last prompt another window will be displayed advising that the Payroll End of Year has completed successfully, click OK.

Check that this has completed successfully by navigating to Payroll > Maintain > Employees, pages 3 and 4. If the figures on these pages are not blank the Year End process has NOT been completed correctly and needs to be repeated.

  • Tax Tables

Tax Tables no longer require manual updating. When the Payroll End of Year function is performed, the tax tables will automatically be updated for the following payroll year.

  • Superannuation Contributions

Update the system to reflect any changes to superannuation legislation to ensure BusinessCraft calculates the correct amount of superannuation payable on wages commencing with the first payroll for the new payroll year. This must be done after the Payroll Year End has been carried out and before the first payroll for the new payroll year.

Go to Payroll > Setup > Superannuation Control:

If Superannuation is accrued using a percentage, if required, update the Percentage Contrib (opt) value to the new percentage. On saving the system will prompt whether all employees with the existing value being updated should be updated. Normally, respond Yes to this prompt. Please note any employees with a non-standard percentage will not be updated. A report is provided indicating the number of employees updated and the number not updated.

If Superannuation is accrued using a dollar amount, update the Dollar Contribution (opt)value to the new amount required. On saving, please note there is no automatic update for all employees as is the case for percentage.

  • Amended Payment Summaries

When changes are made to an employee’s Year-to-Date totals before Payroll End of Year has been carried out but after a Payment Summary Data file has been sent to the ATO, new payment summaries need to be prepared and submitted and an amended Payment Summary Data file needs to be sent to the ATO.

When an employee’s Payment Summary is printed in non-trial mode, the system flags the Payment Summary as being printed for that employee. This flag needs to be changed back to unprinted so that the amended payment summary can be printed.

Go to Payroll > Period End > End of Year > Change Payment Summary/EMPDUPE Status. Enter search criteria to narrow the list of employees shown or leave blank to show all.

For every employee that requires an amended payment summary, change the Y to an N in the Payment Sum Printed? column. Do the same in the ETP Printed column if this pertains to an ETP Payment Summary. Update the value in the EMPDUPE created? column to an A (for Amended). Save and Exit.

Return to the beginning of the Print Payment Summary steps. BusinessCraft will only print those employees whose Printed flag is set to ‘N’ so employee range criteria can be left blank. Ensure that an ‘A’ is entered in the Amendment field.

Original Payment Summaries can be reprinted for employees if required by following this same procedure, and selecting ‘O’ in the Amendment field instead of A. In this instance, a new Payment Summary Data file will not need to be produced.

PLEASE NOTE: Amended or Original Payment Summaries can only be reprinted prior to the completion of Payroll Year End, as the Payroll Year End process clears the data required for these documents. If the Payroll Year End has been processed, the steps need to be carried out using the backup that should have been carried out as instructed.

  • Amended Payment Summary Data Files

This situation will occur in the instance where an employee’s payment summary totals have been changed after the Payment Summary Date File has been submitted to the ATO.

An amended Payment Summary Data File should only include any Amended Payment Summaries and any Original Payment Summaries not previously included in any Payment Summary Data File lodged with the ATO.

In the same manner described in the Amended Payment Summaries section, go to Payroll > Period End > End of Year > Change Payment Summary/EMPDUPE Status and update the EMPDUPE created column to an A for the employees for whom an amended payment summary data file is required.

Then go to Payroll > Period End > End of Year > Create Payment Summary Data File.

Complete the process as per the Create Payment Summary File step but ensure the File Extension is incremented from A01 to A02 and then submit the file to the ATO.

Revision 1

24th January 2019