End of Year Payment Summary Guide

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________________________________________________________________________________ EOY-Payment Summary Guide (Nov 2015) © The Institute of Certified Bookkeepers Page 1

Table of Contents

Overview of what needs to be done ... 2

Getting ready to Prepare Payment Summaries ... 3

Checks ... 3

Check Software Compatible ATO Changes ... 3

Check Final Pay, Terminations and ETPs ... 3

Check Employee Details and former Employees ... 4

EOY Payroll Storage Folder ... 4

Reconciliation and Reports ... 5

Reconcile Wages ... 5

Reconcile PAYG Withholding ... 5

Reconcile Employee Entitlements ... 5

Print EOY Payroll Reports ... 5

Prepare Payment Summaries via Software ... 6

Set up Fields for Payment Summary – Gross Wages, Allowances, Deductions and Lump Sum ... 6

Set up Fields for Employment Termination Payment ... 10

Enter Reportable Employer Super (RESC) ... 11

Enter Reportable Fringe Benefits ... 12

Verify, Review and Save Payment Summaries ... 13

Provide Payment Summaries to Employees ... 13

Create EMPDUPE file for Lodgement ... 13

Lodging Payment Summaries ... 14

Lodging with Supplier Third Party Details ... 14

Lodge File via SBR GovReports ... 14

Lodge File via BAS Agent Portal ... 15

Manual Payment Summaries ... 16

Amending a Payment Summary ... 17

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________________________________________________________________________________ EOY-Payment Summary Guide (Nov 2015) © The Institute of Certified Bookkeepers Page 2

Overview of What Needs to be Done

Checks

• Check software compatible ATO changes

• Check last pay for financial year has been run including director payments • Check employee terminations and ETPs

• Check employee details, name, address, TFN and start and finish employment dates

• Check for former employees and mark inactive

• Store payment summaries PDFs and verification report

Reconcile

& Report

• Reconcile payroll summary to gross wages • Reconcile PAYG withholding

• Reconcile entitlements • Print EOY payroll reports

Prepare

• Flag gross wages • Flag allowances

• Flag reportable superannuation (RESC) • Enter reportable fringe benefits

• Enter ETP details if applicable • Verify payroll information • Prepare payment summaries • Create EMPDUPE file

Lodge

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Getting Ready to Prepare Payment Summaries

Checks

1. Check software compatible ATO changes

2. Check last pay for financial year has been run including director payments 3. Check employee terminations and ETPs

Review the payroll year and determine if any terminations have been processed. Discuss with business owner if review of calculations is required.

Review type of terminations to check no ETPs are included

If ETPs have been processed incorrectly, amend pays to separate ETP tax and payroll fields for ETP payment summary.

4. Check employee details, name, address, TFN and start and finish employment dates

Ensure your Employee Cards have all the necessary information entered, including:

 First and Last Name

 Address (including the state in capital letters)

 Tax File Number

Software Software Version EMPDUPE

File version

MYOB Australia

AccountRight Plus 2015 AR2015 v19.10 11.0.1

AccountRight Plus 2014 AR2014 & v19.9 11.0.1

AccountRight Plus 2013 AR2013 11.0

AccountRight Plus 2011/2012 AR2011 10.0

AccountRight Plus, Premier, Enterprise V19.5 – v19.8 10.0

AccountRight Plus, Premier, Enterprise V19 10.0

MYOB Accounting Plus V18.5 9.0

MYOB Premier V12.5 9.0

MYOB Enterprise V6.5 9.0

Reckon Australia

Reckon Plus, Pro, Premier & Ent 2014/15 2014/15 11.0.1 Reckon Plus, Pro, Premier & Ent 2013/14 2013/14 11.0.1 Reckon Plus, Pro, Premier $ Ent 2012/13 2012/13 10.1.0 Reckon Plus, Pro, Premier & Ent 2011/12 2011/12 10.0.0 Reckon Plus, Pro, Premier & Ent 2010/11 2010/11 9.0

Intuit

Intuit Web Payroll after 1 July 2015 pay cycle 2014/15 Automatic 11.0.1

Xero

Xero with Integrated Payroll after 1 July 2015 pay cycle

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Note: the following Tax File Numbers may be used in special circumstances: TFNs to use in special circumstances

333 333 333 Payee is under 18 years of age and earns $350 or less a week. 444 444 444 Payee is a Commonwealth Government Pensioner.

111 111 111 Payee is applying for a TFN and 28 days has not passed.

000 000 000 If the taxpayer chooses not to quote a TFN and has not claimed an exemption from quoting a TFN or does not fit into any of the above categories

999 888 777 (or similar)

You have cards (inactive or active) for old employees with missing TFNs. Only use these ‘dummy’ numbers if you are certain the payee did not receive any form of payment from you in the year just ended.

5. Check for former employees and mark inactive

If you have former employees showing on your list but are unable to delete their card, either mark them inactive or change status to type ‘other’ if applicable in the software. This will remove them from the payment summary list and EMPDUPE file. If you do not make this change EMPDUPE file will still include details of the employee’s name and tax file number, regardless of nil value.

6. Create separate payroll folder

In this folder store a copy of the payroll year data file if the software allows this. If you are using browser based software, save relevant reports and payment summaries.

Folder

• Create a folder for electronic payroll document storage • For example, 2015Payroll

Backup

• Backup file labelled with 'payroll-year' if applicable • Reports to save from online software

• P&L for wages YTD

• Balance Sheet for payroll liabilitites • Entitlement balance report

• Payroll summary by category • Payroll summary be employee

• Detailed GL report of all payroll expense and liability accounts

Store

• PDFs of payment summaries

• Payment summary verification report • EMPDUPE file

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Reconciliation and Reports

Reconcile Gross Wages

1. Print your profit and loss statement for the year ended 30 June 20XX and note the total wages for the year. (The relevant total may be in several accounts)

2. Print payroll summary report for the same period and note the total wages for the year from this report.

Your total wages figure from the profit and loss statement and payroll summary should agree.

Why doesn't it agree?

 Check for any wrong postings by reviewing an “account inquiry” on your wages account.

 Look for any postings that have not been entered through payroll.

 Ensure that all amounts paid to the ATO in respect of PAYG withholding instalments have been coded to the PAYG withholding payable account and not to salaries.

 Make sure you take into account any allowances posted to accounts other than wages.

Reconcile PAYG Withholding

Add up your total PAYG withholding payments for the year paid on your BAS. Refer back to the payroll summary report printing in reconcile gross wages. Note the total amount of PAYG withholding deducted per wages should agree to the total PAYG withholding payments lodged on the Business Activity Statements (BAS). If there is a discrepancy, adjust PAYGW on the June BAS.

Reconcile Entitlements

1. Ensure the flags for “carry remaining entitlement over to next year” for annual leave entitlement is selected if available.

2. Print an entitlement detail report from 1/7/XX to 30/6/XX to review and reconcile annual leave pay outstanding and to outline entitlements accrued and taken for the year.

3. If entitlement balances are incorrect, complete a pay run to adjust the balances and re-run report as at end of year.

Print EOY Payroll Reports

Print the following reports and file them for the end of payroll year.

 Payroll summary of employees

 Payroll YTD summary of payroll categories

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Process

This guide focusses particularly on the Individual Non-Business and Employment Termination Payment Summary processes.

PAYG Payment Summary Individual Non-Business

This summary is the main form used for most business, it applies to:

 Employees, company directors or office holders

 Religious practitioner

 Payees receiving Centrelink or other benefit payments

 Payees receiving Commonwealth education or training payments

 Payees receiving Compensation, sickness or accident payment

 Payees receiving non-superannuation income streams

 Payees receiving return to work payments

 Payees receiving a non-superannuation annuity or pension

PAYG Payment Summary Employment Termination Payment ETP

This summary is the main form used for most businesses for an ETP which consists of:

 Genuine redundancy payment in excess of the tax free amount

 Non-genuine redundancy payment where applicable (see ICB - Terminations Resource for further clarification)

 Unused rostered days off

 Payments in lieu of notice

 Ex-gratia or golden handshakes

 Unused personal leave

Set Up Fields for Payment Summary

Flag the payroll categories or types to the appropriate payment summary field.

The following is a guide:

Gross Payments: Should include all wages, bonuses, commissions, holiday pay, amounts relating to unused LSL and unused AL that accrued after 17 August 93 except if paid as part of approved early retirement scheme or bona fide redundancy. Include any salary sacrifice categories, so that the gross payment is correctly reflected as gross wages less salary sacrifice. Allowance 1-9: Includes any specific allowances you want to report separately, e.g., car,

travel, tool (and these are not to be included in gross payments) Note:

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________________________________________________________________________________ EOY-Payment Summary Guide (Nov 2015) © The Institute of Certified Bookkeepers Page 7 Table 1 - Allowances subject to PAYG withholding

Allowance type Are you required to withhold from allowances?

Is the allowance to be included on payment summary? If so, how should it be shown?

Does super guarantee apply? Allowances paid for working

conditions, qualifications or special duties

For example:

crib, danger, dirt, height, site, shift or travelling time

trade, first aid certificate or safety officer.

Yes Yes (include total allowance in gross payment)

Yes

Allowances for non-deductible expenses

For example:

part-day travel (no overnight absence from employee's ordinary place of residence)

meals (not award overtime meal allowance or overnight travel allowance)

motor vehicle for non-deductible travel - for example, home to work, including cents per kilometre payments.

Yes Yes (include total allowance in gross payment)

Yes

Allowances for expected deductible expenses

For example: tools

compulsory uniform or dry cleaning motor vehicle for work- related travel, including cents per kilometre

payments in excess of Australian Tax Office (ATO) rate (1)

overseas accommodation for deductible travel.

Yes Yes (show total allowance separately in the

allowance box with an explanation)

No

On-call allowance

ordinary hours

outside ordinary hours

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________________________________________________________________________________ EOY-Payment Summary Guide (Nov 2015) © The Institute of Certified Bookkeepers Page 8 Table 2 Allowances which are subject to a varied rate of withholding:

Provided the employee is expected to incur expenses that may be able to be claimed as a tax deduction at least equal to the amount of the allowance, and provided the amount and nature of the allowance is shown separately in the accounting records of the employer.

Allowance type Are you required to withhold from allowances?

Is the allowance to be included on payment summary? If so, how is it to be shown?

Does super guarantee apply? Cents per kilometre car expense

payments using the approved rates

For payments made by applying the approved rate to the number of

kilometres travelled where the usage is up to 5,000 business kilometres.

No Yes (show total allowance separately in allowance box with an explanation)

No

For payments made by applying the approved rate to the number of

kilometres travelled where the usage is in excess of 5,000 business kilometres.

Yes (from the payment for the excess over 5,000 kms)

Yes (show total allowance separately in allowance box with an explanation)

No

Award transport payments

For deductible transport expenses

No Yes (show total allowance separately in allowance box with an explanation)

No

For non-deductible transport expenses Yes (from total payment)

Yes (include total allowance in gross payment)

Yes

Laundry (not dry cleaning) allowance for deductible clothing

Up to the threshold amount

No Yes (show total allowance separately in allowance box with an explanation)

No

Over the threshold amount Yes (from the excess over the threshold amount)

Yes (show total allowance separately in allowance box with an explanation)

No

Award overtime meal allowances

Up to reasonable allowances amount

No No No

Over reasonable allowances amount The allowance must be paid under an industrial instrument in connection with overtime worked

Yes (from the excess over reasonable

allowances amount)

Yes (show total allowance separately in allowance box with an explanation)

No

Domestic or overseas travel allowance involving an overnight absence from employee's ordinary place of residence

Up to reasonable allowances amount

No No No

Over reasonable allowances amount An allowance for overseas

accommodation must be subject to PAYG Withholding and be shown in the allowance box on the Payment

Summary

Yes (from the excess over reasonable

allowances amount)

Yes (show total allowance separately in allowance box with an explanation)

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1. The approved rate is a rate which is less than or equal to the ATO rate plus 1.5 cents and varies depending on the engine capacity of the vehicle.

2. An award transport payment is a transport payment covering particular travel that was paid under an industrial instrument (that is, an award, order, determination or industrial agreement) that was in force under Australian law on 29 October 1986.

3. The current threshold amount for laundry expenses is $150. Dry cleaning allowances should have an amount withheld in accordance with Table 1.

4. Each year we publish a determination setting out the reasonable amounts for

 overtime meal allowance expenses

 domestic travel allowance expenses

 travel allowance expenses for employee truck drivers

 overseas travel allowance expenses.

Lump Sum Payment A-E: Possibly unused long service leave, redundancy payments and back pay (see below table for lump sum allocations on the payment

summaries or ETP)

Type: Resignations, Retirement and Dismissals

PAYG Tax Calculation Payment Summary Allocation

Unused Annual Leave and Leave Loading

Accrued up to 17/8/93 All taxed at 32% Lump Sum A

Accrued from 18/8/93 All taxed at marginal rates Gross payment Unused Long Service Leave

Accrued up to 15/8/78 5% assessable taxed at marginal rates

Lump Sum Payment B

Accrued from 16/8/78 to 17/8/93 All Tax at 32% Lump Sum Payment A Accrued from 18/8/93 All taxed at marginal rates Gross Payment

Type: Genuine Redundancy, Early Retirement Scheme and Invalidity

PAYG Tax Calculation Payment Summary Allocation

Unused Annual Leave and Leave Loading

All Payments All taxed at 32% Lump Sum Payment A

Unused Long Service Leave

Accrued up to 15/8/78 5% assessable taxed at marginal rates

Lump Sum Payment B

Accrued from 16/8/78 All Tax at 32% Lump Sum Payment A

Genuine Redundancy and Early Retirement Scheme From 1/7/2015 Up to limit of $9,780 + $4,891 per

completed year of services

 If payment is over the tax free amount, the excess is an ETP.

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________________________________________________________________________________ EOY-Payment Summary Guide (Nov 2015) © The Institute of Certified Bookkeepers Page 10 Work Place Giving 1-3 Amounts employee regularly donates to charities

Deductions 1-6 E.g., union fees

CDEP Salary or Wages: Used if the employee is in a Community Development Employment Project wages grant

Exempt Foreign Income: Exempt income and/or foreign source salary and wage income, (not to be included in gross payments)

Total Tax Withheld: PAYG withholding

Set Up Fields for Employment Termination Payment Summary

Employment Termination

Payments (ETPs)

PAYG Tax Calculation Payment Summary Allocation

Life Benefit ETP

Invalidity Component Tax Free ETP Code ‘R’

ETP Pre 1/7/83 Component Tax Free ETP Code ‘R’

ETP Post 1/7/83 Component ETP Taxable Component for

 Early Retirement Scheme

 Genuine Redundancy

 Invalidity

 Compensation for injury, unfair dismissal,

harassment or discrimination

ETP Cap:

Under preservation age 32% up to Threshold then 49% Over preservation age

17% up to Threshold then 49%

ETP Code ‘R’

ETP Taxable Component for

 Golden Handshake

 Non-Genuine Redundancy

 Severance Pay

 A gratuity

 In lieu of notice* (See page 4)

 Unused Sick Leave

 Unused Rostered Days off

Use Smallest of ETP Cap and Whole-of-income cap:

Under preservation age 32% up to Threshold then 49% Over preservation age

17% up to Threshold then 49%

ETP Code ‘O’

Death Benefit ETP

Death Benefit ETP – Non

Dependants Taxable Component* All Ages

ETP Cap:

32% up to Threshold then 49%

ETP Code ‘N’

Death Benefit ETP – Dependants Taxable Component

All Ages

ETP Cap:

Nil up to Threshold then 49%

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Payments made to Trustee of deceased estate

No tax withheld by employer ETP Code ‘T’

Threshold ETP Cap $195,000 or Whole of Income Cap $180,000

Use the lessor of the ETP Cap or Whole of Income Cap

(See Page 9 for further explanation)

ETP Taxable Component

If you are preparing an ETP payment summary for an employee, you may need to enter additional information such as termination date and type of payment.

An employment termination payment (ETP) is a lump sum payment made to an employee on termination.

Examples of ETPs are:

 Genuine redundancy payments in excess of the tax free amount

 Unused rostered days off

 Payments in lieu of notice

 Ex-gratia or golden handshakes

 Unused personal leave

Compensation for loss of job or wrongful dismissal

Employment Termination Payment Additional Information

Benefit Type: None / Life / Death. You are required to flag the ETP with a code. Life Benefit ETP Codes

Code Description

R

ETP Made because of one of the following

 Early retirement scheme

 Genuine redundancy  Invalidity  Compensation by Personal injury Unfair dismissal Harassment Discrimination

O

Other ETP not described by R, for example, golden handshake, gratuity, payment in lieu of notice, payment for unused sick leave, payment for unused rostered days off

Multiple Payments for same Termination

S

You made a Code R payment to your employee in a previous income year for the same termination

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Death Benefit ETP Codes Code Description

D

Death Benefit ETP paid to a dependant of the deceased

B

Death Benefit ETP paid to a non-dependant of the deceased and you made a termination payment to the non-dependant in a previous income year for the same termination

N

Death Benefit ETP paid to a non-dependant of the deceased

T

Death Benefit ETP paid to a trustee of the deceased estate

Enter Reportable Employer Super (RESC)

Payment summaries must contain the amount of “reportable” super contributions that an employer makes on behalf of their employees; this is known as RESC, or Reportable Employer Super

Contributions.

RESC includes contributions where an employee influences the rate or amount of super contributed for them. It includes additional contributions made above the compulsory contributions of 9.5% SGC. These Reportable Employer Super Contributions are for contributions before tax and not after tax. Therefore, if an employee asks for additional superannuation to be taken from net pay, then this is not a reportable super contribution, but if an employee asks for additional super (salary sacrifice) to be taken before tax, then this is RESC. See – ATO’s Employer Guide for RESC

Type of Super Question RESC

Yes or No Workplace

agreement/award superannuation

If an employee is receiving 14% super which is part of their award or workplace agreement is the additional 4.75% RESC?

No

Employee additional super

If the employee is asking for super to be deducted after tax is the super RESC?

No Employer

additional super

If an employer pays 10% instead of 9.5 % to every employee without choice

No Employee super

salary sacrifice

If employees award states 9.5 % but they have elected to have a further $100 super per month deducted and paid to super before tax is the super RESC?

Yes

Employee super salary sacrifice

If an employee chooses to have 50% of their salary put to super before Tax is the super RESC?

Yes Directors/Business

Owner Lump Sum super

If a Director or Business Owner pays Lump Sum before June to Super Fund, it should be treated as Salary

Sacrifice Super. However, ICB recommend to check with Accountant as there may be other factors.

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Enter Reportable Fringe Benefit

If an employee’s total fringe benefit amount in the FBT year (1 April to 31 March) exceeds $2,000.00, the amount must be “grossed-up” by the relevant rate and reported in the reportable fringe benefit amount field of the payment summary; this is entered manually, the software will not calculate this. Verify the reportable amount with the tax agent

If your employees have fringe benefits please contact the accountant of the client to discuss which of these needs to be included on the payment summaries. A bookkeeper/BAS agent may assist the accountant and provide information, but they may not ascertain the amount of liability or advise the client.

Fringe benefits grossed-up calculation

Benefits provided to employees that attract fringe benefits tax are also included in payroll tax calculations. The grossed-up value is the gross pay the tax office deems the employee would have had to have earned to have paid for the benefit from his net pay. There are separate gross-up rates for benefits with and without GST.

Factor Calculation without GST

Grossed-up factor = 1 / (1 – FBT rate) FBT rate is 49% = 1 / (1 - .49)

= 1 / (0.51) = 1.9608

Factor Calculation including GST

Grossed-up factor = (FBT rate + GST) / (1 – FBT rate) x (1 + GST) x FBT Rate FBT rate 49%, GST 10% = (0.49 + 0.10) / (1 - 0.49) x (1 + 0.10) x 0.49

= 0.59 / (0.51 x 1.1 x 0.49) = 0.59 / 0.27489

= 2.146

FBT Calculation Excluding GST FBT Calculation Including GST

Employee benefit no GST $3,000.00 Employee benefit inc GST $5,000.00

Factor 1.9608 Factor 2.1463

Taxable Value $5,882.40 Taxable Value $10,731.50

Verify, Review and Save Payment Summaries

Verify the payment summaries information by adding the total tax withheld and the total gross payments on the payment summaries and compare with your payroll summary report for

reconciliation. Note: If allowances are separately shown then reduce from total gross wages. Treat ETP payments the same way.

If there is a discrepancy you may have missed one employee when you chose to print the payment summaries (remember all employees that had payroll activity throughout the year are reported to the ATO – so the EMPDUPE totals are probably right).

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Provide Payment Summaries to Employees

You can either print or email the payment summaries to employees; however, if using email, you are required to gain authority from the employee. Refer to ICB - Electronic Payment Summary Notice to Employees

Create the EMPDUPE File

The payment summary annual report (PSAR) must now be lodged electronically with the Australian Tax Office. The EMPDUPE file created by the software contains the PSAR. The EMPDUPE will contain the ABN of the employer, therefore if a third party will be lodging the file on behalf of the employer, the ABN of the supplier/BAS agent will need to be changed in the EMPDUPE file. (See further details of third party lodgement below).

Close Payroll Year and Load Tax Tables

Take a backup and keep it as the master final payroll backup for that year and start a new payroll year if required by the software. Also if software requires it, update the tax tables to the next financial year.

Browser-based software will automatically update to the new tax tables, so ensure the payment summaries have been finalised before the first pay run of the new financial year.

Make sure you have these point-in-time reports for payroll verification:

 P&L for wages YTD

 Balance Sheet for payroll liabilities

 Entitlement balance report

 Payroll summary by category

 Payroll summary be employee

 Detailed GL report of all payroll expense and liability accounts

Other Types of Payment Summaries

1. PAYG Payment Summary – Business and personal services income - Labour Hire - This form applies to persons you have withheld amounts from payments for:

 Voluntary Agreement

 Labour Hire Agreement

 Other specified amounts such as Performing Artists

 Attributed personal services income

2. PAYG Payment Summary – Foreign Employment - This form applies to persons you have withheld amounts from payments for foreign employment income or income earned in Joint Petroleum Development Area.

3. PAYG Payment Summary – Superannuation Lump Sum - This form is used for employees whom you have made a superannuation lump sum payment. This is only valid to those who are a RSA provide or operate a super fund, fund deposit or life insurance company.

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How to Lodge EMPDUPE file

For June 2015 payment summaries, the ATO has advised that they prefer electronic lodgement of the EMPDUPE file. However, if a business is unable to do this, they will accept paper forms lodged by mail.

You must obtain a signed authority to lodge the file electronically. See ICB - Authority to Lodge EMPDUPE.

Third Party EMPDUPE Lodgement

The ATO states:

“If you lodge PAYG withholding annual reports on behalf of other payers, the supplier ABN in the annual report data files for the payer entities must match the ABN in the AUSkey you use for the lodgements. If you lodge on behalf of others, the supplier ABN will be different to the payer ABN. You must ensure the correct payer ABN is used in the payer annual report”.

If you are a BAS Agent lodging an EMPDUPE file on behalf of your client’s then your ABN and details are to be lodged with the EMPDUPE. It seems most of the accounting software products deal with the option of adding third party details and SBR reporting programs such as GovReports will also do the same. Therefore, we recommend you check with your software re third party details or obtain a licence with an SBR Reporting program.

Electronically Lodging the EMPDUPE

You must lodge the EMPDUPE file via electronic process using the business portal, BAS agent portal or GovReports.

To do this you must:

1. Gain authority from the client to add them to your BAS Portal

2. Gain authority from the client to lodge the EMPDUPE File electronically

3. Provide the client with a receipt of lodgement (GovReports provides this instantly) Electronic Lodging Processes via GovReports

Step 1 Log onto GovReports

Step 2 Go to client by Select Client List

Step 3 Select Client and Form - Select –PAYG Annual Summary – Lodge

Step 4 Uploading an EMPDUPE file – Choose Import EMPDUPE File, then click on Choose File and navigate to folder of your client’s payroll and select EMPDUPE, this will upload into GovReports.

Step 5 Select ‘Read File’, and view the information

Step 6 Once you are satisfied you can Pre-Lodge, which tests the information and then Lodge or you can Save and Lodge later

Step 7 If you have Pre-Lodge or saved and are ready to Lodge –go to the Queue. Select

Lodgement, Queue. You will see that everything you have ‘Saved’ is listed and you can choose to Lodge All or only Lodge Selected.

Step 8 Once Lodged you will receive email acknowledgement which you send a copy to your client.

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________________________________________________________________________________ EOY-Payment Summary Guide (Nov 2015) © The Institute of Certified Bookkeepers Page 16 ATO BAS Agent Portal

Step 1 Access Portal –The file transfer facility is accessed from the Main screen. (See to the left and below). You do not access the relevant client - but this is a file lodgment facility that the ATO will administer separately to your client directory.

Step 2 Select Lodge File

Step 3 Select Lodge

Step 4 Select Browse and navigate to folder of your client’s payroll and select EMPDUPE file

Step 5 Once the file is uploaded, tick box for AUSkey details declaration and Submit Step 6 To check that your file lodged, select file status

File Status

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Manual PAYG Payment Summaries

You may have clients that do not have software to create payments summaries and EMPDUPE files therefore you have several options.

1. Use manual payment summary paper form provided by the ATO and provide employee with hand written payment summary and lodge by mail.

2. Use manual payment summaries provided by the ATO and lodge via ATO BAS agent portal. 3. Use GovReports and manually create the payment summaries within GovReports, print copies

for the employees and lodge via GovReports.

Create and Lodge a Payment Summary Process using GovReports Step 1 Log onto GovReports

Step 2 Go to client by ‘Select Client List’

Step 3 Select Client and Form - Select –PAYG Annual Summary – Select Step 4 Select Manual - Next.

Step 5 Select Financial Year - Next

Step 6 Enter Payee Details and Payroll Information for Payment Summary - Submit Step 7 Email and Print Payment Summary to employees and client

Step 8 Next and Lodge EMPDUPE File Step 9 Email Client Lodgement Receipt

 ICB - Payment Summary Preparation in GovReports

Amended Payment Summary

There are various reasons why you may need to amend a payment summary and the following outlines just a few:

 If you made a mistake with any of the amounts in your completed PAYG payment summary statement and you have already sent it to the ATO

 If you have amended any of the amounts of the payment summaries issued to payees

 If you are sending payment summaries that you did not send before

 If you reported an incorrect RESC value

 If you did not include all the wages categories used throughout the payroll year

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________________________________________________________________________________ EOY-Payment Summary Guide (Nov 2015) © The Institute of Certified Bookkeepers Page 18 From the ATO website: The amended annual report file must only contain amended payment

summaries and any additional original payment summaries that were not reported in a prior annual report for the same financial year. Do not include payment summaries that were previously sent and were not amended.

Lodging Electronically

It is possible to lodge amended PAYG payment summary electronically with the ATO using the BAS portal if your software produces an amended EMPDUPE file. The following shows the process for the main accounting software packages and where this isn’t possible, the manual process.

MYOB

Current versions of MYOB are unable to create an amended EMPDUPE file, therefore our solution is to lodge the Amended Payment Summary using GovReports.

1. Use MYOB to re-issue the payment summary to the employee/s.

2. Re-create the EMPDUPE file - MYOB will create the EMPDUPE file with all employees in it. 3. Upload to GovReports and only tick the employee/s that have been amended - do not re-lodge

all employees (unless all have been amended).

4. Or manually create the amended payment summary following the GovReports instructions, manually entering values for selected employee/s.

Intuit

1. Unpublish the original payment summaries - you need to unpublish all employees. 2. Make the corrections to the relevant employee/s.

3. Re-generate payment summaries.

4. Select those employees that need to be amended by selecting “Yes” to be amended. 5. Select “Publish All” to republish

6. Select General EMPDUPE file - you then get an option to download all payment summaries or amended payments summaries only.

7. Select “Amended” which will then download the new EMPDUPE file. Reckon

1. Go to the Employees menu and click Process Payment Summaries. 2. Select the Tax Year (do not select any tax year prior to 2007/08). 3. Select Generate Payment Summaries as 'Amended'.

4. In the employees list, select the employees that have payment summary information amended. 5. Click OK.

6. Click Electronic File to create an EMPDUPE file and select a location to save it. The EMPDUPE file will indicate that the payment summary has been amended Xero

1. Unpublish the original payment summary of the employee/s you need to amend - this will unlock the payroll data. You only need to unpublish the payment summaries you need to amend.

2. Make corrections to relevant employee/s.

3. Publish the payment summary for relevant employee/s and tick YES to produce an amended payment summary.

4. Reprint or email the amended payment summary to the employee/s.

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________________________________________________________________________________ EOY-Payment Summary Guide (Nov 2015) © The Institute of Certified Bookkeepers Page 19

Saasu

Saasu does not currently have the facility to produce an amended payment summary. 1. Make corrections to relevant employee/s

2. Re-create the payment summaries. Saasu will produce payment summaries for all employees 3. The EMPDUPE file will include all employees whether they have been amended or not

4. See the instructions above for MYOB. Lodge the amended EMPDUPE file via GovReports or the PAYG payment summary statement paper form via mail to the ATO.

Lodging via GovReports

For detailed instructions on using GovReports to create and lodge payment summaries, see this link: ICB - GovReports Lodge Payment Summaries

Lodging via Mail

If your software does not produce an amended payment summary and you do not have a GovReports subscription, you will need to lodge the amended payment summary statement via mail, by

completing a paper form and posting it to the ATO. You will need to order the paper form. Mail form to:

Australian Taxation Office Locked Bag 50

PENRITH NSW 2740

Unclaimed Payment Summaries

If the employer is unable to contact a former employee, or the payment summaries are returned to the employer by Australia Post, the employer must forward the unclaimed payment summaries to the ATO:

Australian Taxation Office Locked Bag 50

Figure

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References