With Xero, this process becomes so easy, it’s just a click of a button! However, it is important not to forget the vital steps that should be taken before pressing the publish button!
As Kat has suggested in the video, there are a couple of reports that you want to run and cross-check to ensure the amounts are all correct!
Report number 1! Payroll Activity Summary. This can be found under all reports and then the payroll section.
Report number 2! General Ledger. This can be found under all reports and under the accounting section. A tip with this one – make sure you have YTD ticked!
You then want to compare the following balances:
Total earnings = total wages
Total super = total superannuation expense
Total Tax = total PAYGW
All matching? Perfect!
If not, it’s best to go through the process of elimination. We would suggest doing this per quarter first, to then try and cover off where the error is. You can then break it down to months to find the payrun that contains the error.
Once all correct, it is now time to run the payment summaries.
- Firstly, you want to review your organisation details are correct – you will require your legal name, ABN and postal address.
- If any of these are required to be changed – you need to go to Settings – organisation settings
- Enter the signatory name and add the contact number.
- (Optional) Under FBT Exemption, select the checkbox if you want to enter exempt and non-exempt, reportable fringe benefit taxes (RFBT) for each employee.
- If employee FBT amounts exist, you be able to edit these when you review the payment summary.
- Click Confirm and Continue.
- Click Financial Year Ending.
- Review gross payments, PAYG, Total Allowance, Workplace Giving, Union or Association Fees, RESC and Lump Sum amounts for each employee.
- Identify and fix payment summary errors
- Enter any RFBA amounts from your fringe benefits tax return for each employee.
- Enter any Lump Sum amounts.
- This reduces your employee’s gross wages to ensure amounts aren't duplicated.
- Select the checkboxes next to all employees.
- Click Publish.
- Review the Status column for all employees in the payment summary table:
- The tick icon shows the payment summary is published and ready to submit to the ATO.
- The clock icon shows employees with unpublished payment summaries. Identify and fix payment summary errors, then republish.
- Send a payment summary to each of your employees by email using My Payroll, or as a printed PDF.
- Submit payment summary report to the ATO.
If you need further information, Xero have a great video that can be found at the following link, which will help guide you through the process - https://help.xero.com/au/PayrollEOFY
A couple of other sweet tax tips to check prior to June 30
- Check your superannuation is up to date – you can check this via the superannuation tab in Xero – the only amounts that should be sitting here are amounts for the June quarter.
- If not, you want to make payments ASAP
- If yes, you can also make payments prior to 30 June to ensure you get the tax deduction in the current financial year!
- Expense claims – if you use these in Xero, it is always good to make sure you have paid out any that have yet to be processed.
As always, if you need help with any of the above, the team at SMART are always just a phone call or e-mail away!
For more information, guidance and/or advice on this subject, or for a complimentary consultation to review your affairs please contact SMART Business Solutions on 0359 11 7000 or firstname.lastname@example.org
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