Introduction

This guide explains End of Month, Finalisation Declarations and End of Year processing for datasets using Single Touch Payroll. Please refer to the Single Touch Payroll Guide for processing instructions for Payroll Events and Update Events.

End of Month

There is no change to End of Month processing in Payroll if using Single Touch Payroll. Although the process is unchanged, it is covered in this guide for completeness.

Finalisation Declarations

When using Single Touch Payroll, employers send year to date income, tax and superannuation information to the Australian Taxation Office (ATO) each pay period. These submissions are known as Payroll Events and the information provided is available to employees through their MyGov account at any time and are known as Income Statements. The information provided by MyGov is not available for submitting Income Tax returns until the employer sends a Finalisation Declaration. BusinessCraft calls this marking a payment as a Final Pay.

Employees Terminated during the Payroll Year

For employees terminated in a pay period, including those with Employment Termination Payments (ETP), the last Payroll Event for that employee should be marked as a Final Pay. This is a Finalisation Declaration and flags the MyGov information for that employee as Tax Ready.

This replaces the requirement for a part year Payment Summary and where applicable an Employment Termination Payment Summary.

If the last Payroll Event for a terminated employee was not marked as Final at the time, then an Update Event can be carried out as soon as possible after that to notify the ATO that the year to date information for that employee is Final.

Employees Employed at the end of the Payroll Year

For employees employed at the end of the payroll year, a Finalisation Declaration must be provided to enable employees to submit Income Tax Returns as well as relieve employers of the obligation to provide employees with Payment Summaries and submit a Payment Summary Data file to the ATO.

This can be done in BusinessCraft as part of the Payroll Event for the last payroll for the year or as a separate Update Event. It is recommended to use an Update Event to ensure employees not paid in the last pay for the year are not missed for finalisation declaration.

Extended Deadline for Finalisation Declarations

Please note that the ATO has set an extended Finalisation Declaration deadline of 31 July 2019 for employers who started STP reporting in the 2018/2019 year.

Failure to provide finalisation declarations requires the provision of Payment Summaries and the submission of Payment Summary Data files as was the case in prior years.

The following link contains recommended reading from the ATO:

https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/Single-Touch-Payroll-employer-reporting-guidelines/?page=7#Finalising_your_Single_Touch_Payroll_data

End of Month

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

  • Clears month to date values for Employees

  • Performs a Superannuation Integrity Check and creates/posts any required adjustments

  • Advances the Journal Number and 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 and the Payroll End of Month screen displays:

  • The reports that should be run before carrying out End of Month

  • The Superannuation Report which should be run after End of Month so that any identified Superannuation Integrity Check adjustments are included.

A printer icon enables the screen to be printed for reference. Some of these reports will need Date Range Criteria to be specified for the month.

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

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

It is recommended that if this is the case, the end of month process is not continued by clicking No and the transactions investigated and either processed or deleted before recommencing the End of Month process.

Once the unposted transactions have been addressed and the End of Month process reaches the previous step reached (without an Unposted Transactions warning) and Yes is clicked, the BusinessCraft Print Selector is displayed:

If Leave Liability discrepancies are identified as part of the end of month process, a Payroll Leave Liability Reconciliation Report is produced, followed by a Payroll Distribution report showing the distributions created to account for those identified discrepancies.

The Payroll Superannuation Integrity Check Report is then produced:

After exiting the BusinessCraft Report Selector, the Payroll End of Month process is complete:

Finalisation Declarations

The Finalisation Declaration process for payroll replaces the Payment Summary process and must be performed AFTER (or optionally as part of) the final pay run for the current payroll year but BEFORE the next pay run for the new payroll year is processed.

Prerequisites

  • 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 and protects an additional payroll being created inadvertently.

  • Backup BusinessCraft

Create backups of each dataset located in the xfSvr folder, the MapDr > Reports Folder and the MapDr > Printer folder.

  • Update to the required version of BusinessCraft

BusinessCraft will advise the required product version to use prior to commencing the Payroll End of Year Process. This is important to ensure new Tax Tables are installed as part of the End of Year process.

Employees Terminated during the Payroll Year

In most cases, either a Payroll Event or an Update Event for a Terminated Employee will have been flagged as Final during the year and no further action is required in relation to those employees.

A possible exception is that the following fields on Page 3 of the Employee Master were not correct at time of providing the Finalisation Declaration:

If that is the case update those fields for the employees concerned using Payroll > Period End > End of Year > Update Year End Employee Values (see instructions in next section) and submit an Update Event for those employees as soon as possible. If there is a possible delay in determining these values, submit an Update Event for the employees concerned flagged Not Final.

Please note UPP is not supported by BusinessCraft in Single Touch Payroll and if a value is recorded for an employee in that field a Payment Summary will be required and the employees information should not be marked as Final.

Employees Employed at the end of the Payroll Year

Prior to submitting a Finalisation Declaration either by a Payroll Event or Update Event, ensure that the following fields on Page 3 of the Employee Master are correct for the current payroll year :

If not, use Payroll > Period End > End of Year > Update Year End Employee Values and a Range Criteria screen is displayed. 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.

Please note UPP is not supported by BusinessCraft in Single Touch Payroll and if a value is recorded for an employee in that field a Payment Summary will be required and the employees information should not be marked as Final.

Allowances and Deductions

Unless it is known that Allowances and Deductions are not configured correctly it is no longer necessary to review the Allowance and Deductions settings as they have been used throughout the year by Single Touch Payroll.

If unsure, refer to the Allowances and Deductions section of the Single Touch Payroll Guide.

ATO Electronic Reporting Control

Unless it is known that the ATO Electronic Reporting Control screen is not configured correctly it is no longer necessary to review the screen as it has been used throughout the year by Single Touch Payroll.

If unsure, in particular check the Financial Year End Date and Financial Year fields, please refer to the ATO Electronic Reporting Control section of the Single Touch Payroll Guide.

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

Use an Update Event to send Finalisation Declarations to the ATO

This step replaces the Print Payment Summaries, Create Payment Summary Data File and Change Payment Summary/EMPDUPE Status menu items within the End of Year menu. Please refer to the Single Touch Payroll Guide for an explanation of all options.

Go to Payroll > Transactions > Single Touch Payroll and select the Update Event Tab. Enter/select the last day of the Payroll Year and click Load to display all employees with Year to Date values for the current Payroll Year:

Please note that all employees with Year to Date values are displayed including those terminated and finalised during the year. There is no problem sending a second final advice for those employees.

Review the list to ensure it is valid and, then click the Final All button to select all employees. Note that the values in the Final Column change to Final and the YTD column changes to Sending YTD:

Use the Generate Button to Year to generate Final Declarations for all the selected employees in STP Format ready for submission to the ATO. The screen moves to the Payroll Event Tab, positioned at the Review and Sign STP Report step:

Review and Sign the STP Report and Send the STP Data to the ATO in the same manner as used for any other Payroll Event.

It is crucial that a working backup of the payroll year is taken NOW, BEFORE carrying out Payroll End of Year, as this will be required in any instance where historical payroll data is required or amendments are required to submissions sent to the ATO.

End of Year

Provided a backup has been carried out, the Payroll Module can now 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.

Go to Payroll > Period End > End of Year > 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 (ignore Print Payment Summaries if using STP). If all is in 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 and sample checking that MTD and YTD figures on these pages are blank.

  • Navigating to Payroll > Setup > Payroll Control File Maintenance > Page 1 and ensuring the Date Last YTD Cleared field shows the expected year end date just closed.

  • Navigating to Payroll > Tables > Tax Tables and ensure the Date Range displayed is for the new 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.

  • Check that the Max Contribution per month field contains the correct value in accordance with ATO guidelines.

  • Check that the Exemption Criteria fields contain the correct values in accordance with ATO guidelines.

Protected Earnings

Check that the Weekly and Monthly Protected Earnings fields in Payroll > Setup > Payroll Control File Maintenance > Page 2 contain the correct weekly and monthly values in accordance with ATO guidelines:

Revising Finalisation Declarations after End of Year

In the rare situation, where Finalisation Declarations have been sent to the ATO and Payroll End of Year has been carried out, and an error is found necessitating a revised advice to the ATO, the backup carried out prior to Payroll End of Year is needed.

The immediate step is to send an Update Event from the backup to the ATO indicating the data for the employee/s is NOT FINAL.

Carry out required changes and then send a subsequent Update Event containing the updated YTD values with the employees flagged as Final.

Revision 1

20th May 2019