End of Financial Year 2015/16: Payroll Considerations

Are you an employer? Use this EOFY payroll housekeeping list to ensure everything is in order before June 30.

With so much going on leading up to the end of financial year, it’s a good idea to do some payroll housekeeping during June and avoid any issues that will inevitably arise once June 30 arrives.

As an employer, it is your duty to provide PAYG summaries to your employees by July 14. They must then be lodged electronically with the ATO via the Business Portal, BAS Agent Portal, Tax Agent Portal or SBR provider by August 14. This is particularly important for MYOB users, who may not be able to process payroll in the new financial year until the last payroll year is closed off. You may also be unable to edit 2015/16 payroll entries, so it is essential your records are correct before this occurs.

By going through the below checklist, you can identify the issues you’re unable to resolve without professional help, and find suitable assistance before the EOFY rush.

Check your employee details are correct

Update contact details, and ensure Tax File Numbers are recorded.

Cross-reference your payroll data

Run a payroll report, and a profit and loss report for the financial year to date.

Compare the amount of gross wages recorded with the amount of wages and salaries reported on the P&L – these should be the same.

Check that the PAYG withholding amount agrees with what has been paid to the ATO. The June BAS provides an opportunity to adjust these balances.

Investigate discrepancies

Reimbursements paid to employees through payroll may show up on the payroll report, but may not accrue to wages and salaries.

Manual entries made against an employee but not through the payroll function may not accrue to wages and salaries.

Speak to your accountant

Check whether you are liable to report FBT amounts.

Employee entitlements

Ensure any unused employee entitlements such as annual leave and personal care leave are flagged to carry over to the next year.

Do a dummy run of PAYG summaries (still referred to as Group Certificates by some)

Check amounts against payroll report and ensure that any salary sacrifice made for an employee is showing as RESC (Reportable Employer Super Contributions).

How did you go? If you’ve come across an issue that you need help with, please get in touch with us at SWAG Bookkeeping.