End of Year Notes 2017/2018 · 2018. 6. 25. · End of Year Preparation Checklist Section 1:...

End of Year Notes

2017/2018

Copyright

© Sage Software Australia Pty Limited 2018 ABN 40 071 007 326

All rights reserved.

This publication is the copyright of Sage Software Australia Pty Limited ABN 40 071 007 326. Apart from copying permitted under the Copyright Act 1968, no part of this publication may be copied, reproduced or communicated to the public by any process, electronic or otherwise, without the express written permission of Sage Software Australia Pty Limited.

Disclaimer

This material is provided for informational purposes only. Accordingly, Sage does not provide advice per the information included. The use of this material is not a substitute for the guidance of a lawyer, tax, or compliance professional. When in doubt, please consult your lawyer, tax, or compliance professional for counsel. The Sage product(s) described herein is/are governed by the terms and conditions per the Sage End User License Agreement ("EULA") or other agreement that is provided with or included in the Sage product. Nothing in this document supplements, modifies, or amends those terms and conditions.

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Sage, Sage logos, and Sage product and service names mentioned herein are the trademarks of The Sage Group plc or its licensors. All other trademarks are the property of their respective owners.

Sage_WageEasy_TRADEOY_Manual_2017-2018_10100

Contents

End of Year Notes ..................................................................................................................... 2

2017/2018 ................................................................................................................................... 2

Copyright .............................................................................................................................................. 3

Disclaimer ............................................................................................................................................. 3

Trade Marks .......................................................................................................................................... 3

Chapter 1 ................................................................................................................................... 7

About these notes ...............................................................................................................................7

What’s in the End of Year Notes? ........................................................................................................ 7

How do I use these Training Notes? .................................................................................................... 7

Fonts and Symbols ............................................................................................................................... 7

Sage WageEasy Support ..................................................................................................................... 8

Sage WageEasy e-Knowledge Online Support Portal: ........................................................................ 8

Sage Recruitment Services .................................................................................................................. 8

Sage Printed Products .......................................................................................................................... 9

End of Year Preparation Checklist ..................................................................................................... 11

Section 1: Preparation End of Financial Year - 2017/2018 ............................................................... 11

Section 2: Actions End of Financial Year - 2017/2018 ...................................................................... 12

Section 3: Preparation New Financial Year 2018/19 ......................................................................... 12

Chapter 2 ................................................................................................................................. 13

Preparation End of Financial Year - 2017/2018 ................................................................................. 13

Step 1: Check Financial Year Boundaries .......................................................................................... 13

Step 2: Ensure that you are using the correct version of Sage WageEasy ....................................... 19

Step 3: Prepare for Payment Summary Production ........................................................................... 20

Step 4: Check Company Details ......................................................................................................... 23

Step 5: Check Allowances for the correct ATO Payment Summary options ...................................... 25

Step 6: Reportable Super on Payment Summaries (RESC) .............................................................. 27

Step 7: Check Employee Details ........................................................................................................ 29

Step 8: Enter Reportable Fringe Benefit Tax Amount ........................................................................ 31

Step 9: Print Reports & Reconcile YTD values .................................................................................. 33

Chapter 3 ................................................................................................................................. 45

ACTION END OF FINANCIAL YEAR - 2017/2018 ................................................................................. 45

Step 10: Backup Company Database ................................................................................................ 45

Step 11: Produce Employee ATO Payment Summaries .................................................................... 46

Step 12: Produce ATO Export File (EMPDUPE) ................................................................................ 51

Step 13: Backing up of your Database ............................................................................................... 54

Step 14: Housecleaning (optional) ..................................................................................................... 55

Chapter 4 ................................................................................................................................. 56

PREPARATION NEW FINANCIAL YEAR - 2018/19 ............................................................................... 56

Step 15: Update of Tax Tables to 2018/2019 .................................................................................... 56

Step 16: Update of Modern Awards Supported by Sage WageEasy ................................................ 60

Step 17: Withholding for 27 fortnights/53 weeks (If Applicable) ........................................................ 61

Step 18: Superannuation Obligations 2018/2019 .............................................................................. 62

Step 17: Backing up of your Database .............................................................................................. 64

EOFY Resources ............................................................................................................................... 65

Conclusion ......................................................................................................................................... 67

Appendix 1 - Sunday Penalty Rates ................................................................................................... 68

Appendix 2 - User-defined Reports ................................................................................................... 69

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Chapter 1

About these notes

The information in these guidelines aims to make the End of Financial Year processing as easy as possible by providing step by step instructions and examples.

You should refer to this manual during End of Year processing in Sage WageEasy. If you need to call the Help Desk throughout the End of Year processing, please ensure you have this manual handy.

What’s in the End of Year Notes?

The main sections are as follows:

• Preparing for End of Year • Performing End of Year process • Preparing for New financial year

How do I use these Training Notes?

These training notes are applicable to Sage WageEasy version 6.0.0.7847 and higher. Each section provides information that covers:

• background for performing set up or operating tasks • steps involved to perform tasks identified • tips and pointers about best operating practices

Fonts and Symbols

Fonts and symbols

Type of information

The hand or stop symbol denotes items which contain information which MUST be considered in the current topic

The exclamation or warning symbol denotes items which we recommend you read and take notes of in the current topic

The cloud symbol denotes items that contain information related to the current topic

Sage WageEasy EOY Manual 2017/2018

Sage WageEasy Support

Due to the high volume of calls experienced at this time, please check the information provided prior to contacting the Sage WageEasy Help Desk.

If you require person-to-person assistance, the Sage WageEasy Help Desk is available Monday to Friday via phone or email. When you call please have your customer number at hand.

This number can be found on your Annual Maintenance invoice above the word “Code”. It will be a 5 or 6 digit number beginning with a “9”.

In Sage WageEasy version 6.0.0.7814 or higher your customer number can now be recorded in your Sage WageEasy database by going to File > Company Details > Client Number.

To contact the Sage WageEasy Help Desk from anywhere in Australia:

Sage WageEasy e-Knowledge Online Support Portal:

Authorised contacts can now access the Sage WageEasy e-Knowledge Online Portal and benefit from anytime access to an extensive knowledge base of FAQs and product support queries to assist with your payroll processing.

Click the below link to log-on and access the portal as well as manage your contacts:

https://portal.payrollsoftware.com.au/Support-General/Login.aspx

Sage Recruitment Services

Should you require the assistance of temporary payroll staff during the End of Year period, please call Sage Recruitment Services in your State

For Call

NSW/ACT (02) 9884 4042

VIC / TAS (03) 8643 3521

QLD (07) 3199 2003

SA / NT (08) 8366 6102

WA (08) 9415 1501

Phone

Fax

Email

1300 WAGEEASY (1300 924 332) Option 1

03 9947 9250

[email protected]

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Sage Printed Products

You can order pre-printed payment summary stationery from our website, over the phone or email us an order form.

Order via Details

Website Go to www.sage.com/au then select Products and Services > Payroll and HR > Payroll and HR Services > Pay Advices and Stationery

Phone 1300 624 724

Email [email protected]

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End of Year Preparation Checklist

Section 1: Preparation End of Financial Year - 2017/2018

Step Action

1 Decide your actions for pay period ends that fall close to year end �

2 Ensure you are using the correct version of Sage WageEasy �

3 Prepare for Payment Summary Production �

4 Confirmation of Company Details �

5 Confirmation of Allowances and Deductions settings �

6 Confirmation of Reportable Super settings �

7 Confirmation of Employee Details �

8 Enter Reportable and Exempt Fringe Benefits amounts for Employees (if required)

�

9 Print Reports & Reconcile of YTD values

Reports > Payment Summary > Year to Date

Reports > Union > Year to Date

Reports > Allowances > Year to Date

Reports > ATO Payment Summaries > ATO Payment Summary Differences (speak to Debbie about wording)

Reports > ATO Payment Summaries > ATO Payment Summary Report

�


Section 2: Actions End of Financial Year - 2017/2018

Step Action

10 Backup Company Database �

11 Produce ATO Payment Summaries �

12 Produce ATO File (EMPDUPE) �


14 [Optional] Housecleaning �

Section 3: Preparation New Financial Year 2018/19

Step Action

15 Update of Tax Tables to 2018/2019 �

16 Update of Modern Awards �

17 Withholding for 27 fortnights/53 weeks (if applicable) �

18 Superannuation Obligations 2018/2019 �


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Chapter 2

Preparation End of Financial Year - 2017/2018

Step 1: Check Financial Year Boundaries

Period End Date

Sage WageEasy Reference: Setup > Preferences > Configuration > Period End

The last day of the 2017/2018 financial year falls on a Saturday. This means your final pay cycle for 2017/2018 financial year may end on a date before 30 June 2017. However, the payment may not be made until the new financial year i.e. on or after 1 July 2017.

In accordance with the ATO requirements, all salary and wage payments must be reported in the financial year they are received (i.e. paid to your employees).

If your company has a pay period ending on or before 30 June 2018 where the payment to staff will be made on or after 1 July 2018, this payment needs to be reported in the new financial year not the 2017/2018 financial year.

If this is the case for your business you need to change the financial Period End to exclude any pay period end dates in Sage WageEasy that falls on or before 30 June 2018 where the payment to the employees will be made in the new financial year 2017/2018 financial year.

Instructions for changing the Period End are found below. If the change is required, it needs to be made prior to saving your last pay in the 2017/2018 financial year.

Important: The Period End cannot be changed if you have already saved pays beyond that date

Year End Boundaries for End of Financial Year


If BOTH the pay period end date and the payment date to employees are in the same financial year, no action is required. Please skip to Step 2: Correct Sage WageEasy version.

If the PPE (Pay Period Ending) date is in 2017/2018 FY and the date the employer sends the funds is in the 2018/2019 FY you need to exclude this PPE from the 2017/2018 financial year boundaries, instructions below.

• DO NOT change the Period End boundary if the PPE date and the payment date are in the same financial year

• Create a BACKUP before you change the “Period End Boundary” • By default, the “Period End Boundary” will be 01 July – 30 June for each

Financial Year. • This procedure is ONLY utilized in instances where the Pay Period End date

falls on or before 30/06/2018 but the Employees do not receive payment until after 30/06/2018.

The Period End boundary date selected will always determine what the final Pay Period Ending (PPE) date is to be in a financial year. This Period End date acts as a divider to separate the Pay Period End dates towards the End of June. Where a Pay Period Ending date falls on or before the Period End boundary date chosen, it would be deemed in this financial year by Sage WageEasy and typically the last Pay Period Ending date to use for processing EOFY. Therefore, any Pay Period Ending that falls after this Period End boundary date would be deemed as the first Pay Period End date to be reported in the new financial year for ATO payment summary and ATO reporting purposes.

Once the Period End boundary date is set for one year, the following date then automatically filters through to be the Start Date of the next financial year.

Please note that once a payment has been processed past the set Period End boundary date referenced in the Taxation Year Boundaries screen, these dates cannot be changed.

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Period End

Taxation Year Period End boundary dates are found under File > Company Details > Configuration > Period End.

Pay Period End (PPE)

Current Pay Period End dates are represented in bold upon selecting the PPE: menu option on the standard Sage WageEasy toolbar.


Pay Period End setup is found under File > Company Details > Configuration > Pay Periods.

Below is an example of when this procedure may need to be used.

Example: Where multiple PPEs are contained within the one Sage WageEasy Payroll Database.

There is a Calendar Month PPE (Pay Period Ending 30/06/2018 but anticipated processing and paid on 15/06/2018). In addition, there is a Weekly PPE (Pay Period Ending 29/06/2018 pays saved on 29/06/2018 but not paid to the Employees until 01/07/2018).

In this example, the Calendar Monthly Cycle would need to be recorded in this current Financial Year, but the Weekly PPE cycle would need to be reported and deemed as the first PPE in the next financial year.

In this instance, the recommendation would be to change the Calendar Month PPE Cycle to be a Monthly Cycle that ends 28/06/2018 and then processed as anticipated on 15/06/2018.

To align the Calendar Month, Pay Period Ending to be a Monthly Cycle, go to File > Company Details > Configuration > Pay Periods > Calendar Month Cycle > Edit to be a Monthly Cycle with a Pay Period End as 28/06/2018.

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The Taxation Year Period End boundary date can now be selected to End at 28/06/2017 for the 2016-17 FY via File > Company Details > Configuration > Period End.

In the example above, as the Taxation Year Boundary Period End date selected is 28/06/2018 for the last day of 2017/2018 Financial Year, any Pay Period Ending (PPE) dates that fall after 28/06/2018 will now be reported against the new 2018/2019 financial year for ATO Reporting purposes. For example, if the weekly cycle PPE is 29/6/2018 that entire pay period will now report in the 2018/19 Financial Year and NOT the 2017/18 Financial Year as you have now selected to end the 2018 Financial Year as at 28 June 2018.

After processing End of Financial Year, and before processing the next Monthly Pay Cycle on 15/07/2018, please amend the monthly pay cycle back to the normal Frequency: Calendar Month with PPE: Last Day of Month.

File > Company Details > Configuration > Pay Periods > Pay Periods > Monthly > Edit > Change Frequency back to Calendar Month.


Possible Alternative to CHANGING THE PERIOD END - remit the funds to the employee’s in advance (early) for that final pay in the financial year. The practicality of this would depend on your business processes/operating procedures and the amount of pay periods to be reported in the financial year.

After the EOFY processing, and before the next monthly pay run change the Frequency back to Calendar Month.

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Step 2: Ensure that you are using the correct version of Sage WageEasy

There are more than the usual number of updates planned for Sage WageEasy between April and June 2018, so please make sure you are on the very latest version before you commence Section 2 of your year-end processing.

These notes were prepared before the June 2018 release and so the version number in these notes does not represent the final build number.

The download link and installation instructions for the latest release of Sage WageEasy will be activated via the eKnowledge 827 towards the end of June. An email communication advising customers of the June Release availability, relevant release notes and upgrade instructions will be offered at that time.

You can check your own Sage WageEasy version by going to Help > About Wage Easy Payroll

In the above screenshot the build number is blurred out. The actual version and build number will be included in the June 2018 communication.


Step 3: Prepare for Payment Summary Production

There are two things to consider:

• How you plan to distribute your ATO Payment Summaries • Ordering Payment Summary stationery if you need it.

How you plan to distribute your ATO Payment Summaries

You have three ATO Payment Summary production options.

• Email them to Employees as per their pay slip email delivery address. • Save the summaries to an individual or common Folder on your hard drive. • Print.

These options for the employees and how they will receive their ATO Payment Summaries will need to be determined before ATO Payment Summary production. By default, all ATO Payment Summaries will print if no other method has been set up for the employees.

To Email the Employee their ATO Payment Summary

In the Employee File under General > Email/Internet, ensure they have an email address

In addition to the above setup in the Employee File, go to Payments > ATO Summaries > select the Delivery Option Tab and tick the box as illustrated below.

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Sage Wage Easy support can provide you with a query that will select the above email option for ALL employees. Please contact 1300 924 332 or [email protected] (Set_Email_ATO_Payment_Summary.Weq)

To have the ATO Payment Summary for an Employee saved to a specified Folder

Once again, Under Payments > ATO Summaries > select the Delivery Option Tab and tick this box as illustrated below.


Order payment summary stationery (if required)

Plain Paper Payment Summaries are available from Sage Printed Products. Follow this link for a sample of this stationery http://www.sage.com/au/products-and-services/payroll-and-hr/payroll-and-hr-services/pay-advices-and-stationery

Plain paper payment summaries can be printed on:

• Plain A4 paper OR • Sage plain paper payment summary stationery (not available for dot matrix printers)

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Step 4: Check Company Details

Sage WageEasy Reference: File > Company > Company Details

Company Details contain information that is included in the EMPDUPE file sent to the ATO and on the ATO Payment Summaries issued to employees. It is essential to check that the contents are correct before you start EOFY processing.

Company Name & Payer ABN

To access Company Details, select File > Company Details.

To change your company details, click on the Change Company Details button. This will then activate the Registration Wizard where you will be able to amend these details by selecting “Change Licence details”. Please ensure you print or save the Registration form to “pdf” upon completing the wizard and either fax it to 03 9947 9250 or email to [email protected] for the issue of a new licence.

Contact the support team if you do not know your customer number on 1300 924 332 or [email protected]

• If the Company name is not entered and you have only entered a Trading name, the ATO payment summaries issued to employees will not have the Payer’s name/ Company name.

• Confirm that the Company name, Trading Name, A.B.N. and A.C.N are entered as required by the ATO. http://www.abr.business.gov.au will enable you to run an ABN search to check the Company name registered against the ABN that you utilize.

WARNING: Only click on the Change Company Details button if the details need to be corrected. By changing the Company details your database will immediately default to a temporary licence. (ACTIVE FOR 60 DAYS) Whilst awaiting the reissue of a new primary licence number, please keep selecting Register Later when prompted to access the database as per usual.


Company Address, Details of Contact Name & Contact Numbers

Sage WageEasy Reference: File > Company > Company Details > Address

Both the Street Address and Postal address need to be fully completed. Where the addresses are the same please duplicate the business address in the postal address field.

Please note that your Suburb must be entered in the City field and all fields are mandatory except for Fax and Email.

The “State” field must be entered in Capitals as required by the ATO. The “State” field will default to capital letters when entering new details. If you have all the State fields entered in lower case due to data entry in earlier versions of Sage WageEasy you can run a query to capitalise the State field.

If you do not have this Query currently displaying in your menu (HR > User defined), you can email [email protected] for it to be sent to you as a file attachment.

Also, the country field is a mandatory field.

Required fields that are left blank or incorrectly completed may cause your EMPDUPE file to be rejected by the ATO.

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Step 5: Check Allowances for the correct ATO Payment Summary options

This section of end of year preparation is to get you thinking about Allowances.

In Sage WageEasy, Allowances refers to functionality handling both additions and deductions to an employee’s pay. The latter are sometimes referred to as deduction allowances.

Deductions for Union Fees have devoted functionality separate from Allowances. Refer to the next step associated with reconciling reports where the Unions Fees Report is explored along with Union Fee configuration.

You can locate Allowances via Setup > Allowances, select an Allowance then select the ATO Payment Summary tab.

Many readers will be preparing for STP reporting starting the 1st July. The ATO requires Allowances which are reported separately to the employee's individual non-business Gross amount, to be categorised according to a pre-defined list of ATO Types. These are the Additions that, prior to STP Reporting, would have been itemised separately on employee INB payment summaries, e.g. Meal Allowances, Car Allowances.

You will find that changes to Sage WageEasy associated with STP include new fields at the base of the Allowances window.

They are this “Report in STP” tick box and the associated “ATO Type” field.

The same functionality can be applied to deduction allowances for Workplace Giving.

Those of you going live with STP on the 1st July will learn about the STP Activation Wizard. One of its functions is to ensure that these new fields are correctly configured ready for STP reporting. The value of the Wizard is that you can administer the settings across all your Allowances and Workplace Giving deductions at the same time.

However, if you are planning to produce ATO Payment Summaries this year, you will still need to configure the original fields at the top of the window so that they offer consistent reporting.

The example shown above therefore complies both with the old ATO Payment Summary / EMPDUPE file standard and the new STP reporting standard.

Allowances that have been selected to be separated in STP Reporting and on ATO payment summaries are not added into the Gross total on the ATO Payment Summary report. These


Allowances appear separately on the ATO Payment summary for claiming individually by employees when lodging their tax return. It is therefore very important to only show those ‘allowable’ allowances separately on the ATO Payment summary and not all allowances paid to employees.

Any other Allowances that were set up and ticked as a Taxable Allowance will automatically have the value paid or deducted incorporated into the Taxable Gross figure of the Employee or Employees who have been paid this Allowance throughout the Financial Year (unless you select them to list separately on the ATO Payment Summary).

Please consult your Company Accountant for advice on which Allowances may need to be separated in STP Reporting and on the ATO payment summary in the Allowances area.

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Step 6: Reportable Super on Payment Summaries (RESC)

The ATO requires Reportable Employer Superannuation Contributions (RESC) values to display on Individual ATO Payment Summaries and the EMDUPE file. This RESC value includes Superannuation Salary Sacrifices and Employer Additional Superannuation contributions that meet a certain criterion.

For information regarding the rules for RESC, please consult the ATO web site. https://www.ato.gov.au/Business/Super-for-employers/In-detail/Salary-sacrifice/Employer-guide-for-reportable-employer-super-contributions/?page=19#Payment_summaries

To identify those Employees who may have Salary Sacrificed to Super, or had Additional Employer Contributions that are reportable as RESC run Reports > User defined > Super by Department with Gross Report.

After these Employees have been identified visit their employee records using Employee File > Payments > Superannuation then select the Salary Sacrifice or Employer Additional Contribution line and Edit. Ensure the box “Include on ATO Payment summary as RESC” is ticked.

Any payments made prior to ticking the box may not appear on the Individual ATO Payment Summaries. Also, they may be absent from the ATO Payment Summary Report. To make sure previously processed payments are offered to the ATO, you may need to run a User Defined


query called “Fix RESC flag 2018”. Check if RESC will be shown in STP Reporting and so on Individual ATO Payment Summaries by running the ATO Payment Summary Report:

Reports > ATO Payment Summaries > ATO Payment Summary Report.

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Step 7: Check Employee Details

Sage WageEasy Reference: Reports > User Defined > Employee Address & Tax File Number – All employees

Use the User Defined Report Employee Address & Tax file number to identify any missing information or incorrect data entries for the Employees. These will need to be corrected before processing End of Financial Year.

If you do not have this User Defined Report currently displaying in your menu (Reports > User Defined), email [email protected] for it to be sent to you as a file attachment.

Once received, this User Defined Report will need to be saved into the Reports folder from which the database reads. To identify the location of this folder, please go to Setup > Preferences > Configuration > File Locations and check the “Path” field to identify where on your local computer or Network drive the folder is located.

Please use this report to check that all employees are listed with their correct name, their current address, post code and a valid Tax File Number (TFN)

For Employees without Tax File Numbers the following options can be entered

000 000 000 – No TFN quoted by Employee

111 111 111 – Employee applying for TFN

333 333 333 – Employee under 18 and not earning enough to pay tax*

444 444 444 -- Employee is a pensioner

987 654 321 -- Alphabetic characters in quoted TFN

*Employees have 28 days to give their payer a completed Tax file number declaration form with their tax file number (TFN) on it or to claim an exemption from quoting a TFN. An exemption


from having a Tax File Number may be claimed if the employee will not earn enough income to pay tax and they are under 18 years of age.

Follow this link for detailed information on employees without Tax File Number.

https://www.ato.gov.au/forms/employee-share-scheme-annual-report/?page=5

To prompt your Employees to check, and update their current details that you have for them, it may be an idea in the pay periods leading up to End of Financial year to show these details on their payslips.

Set Up > Messages > Add - Add a global message to all employee’s pay slip asking them to let you know if their address has changed in the last 12 months or is different from that appearing on the pay slip after following the next instructions. Employees can also check that their TFN is correct.

Under Setup > Preferences > Pay Slips – select the tick boxes to show the Employees their current address and their Tax file number on their pay slips.

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Step 8: Enter Reportable Fringe Benefit Tax Amount

Wage Easy Reference: Employee > Payments >ATO Summaries > Fringe Benefits

FBT refers to Fringe Benefit Tax and even though it is not directly related to the payroll, reportable values will need to appear on the Employee’s ATO Payment Summary.

If an employee has a Reportable Fringe Benefit Value, commonly known as Grossed-up Taxable Value in excess of $2000.00, the Grossed-up Taxable Value must appear in their ATO Payment Summary. These amounts are calculated from 1 April – 31 March.

The Reportable Fringe Benefits Amount is the grossed up taxable value of certain fringe benefits provided to you by your Payer for the FBT year (1 April to 31 March), where the taxable value of those benefits exceeds $2,000.

https://www.ato.gov.au/Rates/FBT/?page=11#Reportable_fringe_benefits

The Grossed-up Taxable Value is entered directly into the Employee File ATO Payment Summary screen found under Employee > Payments > ATO Summaries > Fringe Benefits.

In the 2016/2017 financial year, Fringe Benefit reporting changed to accommodate Exempt Fringe Benefit.

Types of organisations that are exempt from paying FBT, include public benevolent institutions, health promotion charities, public and not-for-profit hospitals and public ambulance services.

eKnowledge article 836 explores configuration of your Sage WageEasy system for Exempt Fringe Benefit.

Please check with your Company Accountant or seek advice from the ATO with regards Non-Exempt and Exempt Reportable Fringe Benefits.


COMMUNITY DEVELOPMENT EMPLOYMENT PROJECT SALARY OR WAGES

From 1 October 2011 payments under the CDEP scheme have ceased however, some participants may still receive such payments under a 'grandfather' arrangement. For further information, refer to the Department of Human Services website www.humanservices.gov.au

https://www.ato.gov.au/Forms/PAYG-withholding-for-Community-Development-Employment-Project/?page=1#Introduction

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Step 9: Print Reports & Reconcile YTD values

After the last Pay Period of the Financial year 2017/2018 has been processed and prior to printing the ATO Payment Summaries, you will need to ensure that payroll balances back to your accounting system. To do this you will need to print and reconcile the financial figures from the following 5 reports based on the Pay Period End dates (that you have determined fall into the Taxation Year Period End boundaries) as selected in Step 1.

You can minimise the risk of having to correct discrepancies at End of Year by regularly reconciling during the year, e.g. after each pay is processed and as part of your end of month procedures.

The reports are:

• Reports > Payment Summary > Year to Date

• Reports > Union > Year to Date

• Reports > Allowances > Year to Date

• Reports > ATO Payment Summaries > ATO Payment Summary Differences (speak to Debbie about wording)

• Reports > ATO Payment Summaries > ATO Payment Summary Report

When creating the suggested Reports, Select Year to Date (Financial) if you did not need to utilize the Period End date function to change your financial year boundaries. By default, this will capture all Pay Period End dates that fell between 01/07/2017 and 30/06/2018.

If you have defined your financial year differently by utilizing modifying the Taxation Year Boundaries, create your reports using the dates as per your Taxation Year Boundary Period Start and End dates. You can check these under File > Company Detail Configuration > Period End > Taxation Year Boundaries > 2018 to identify these dates for your 2017/2018 Financial Year. This will therefore exclude PPEs intended for 2018/2019.

In addition, if you used the Period End option for last in 2016/2017 that is, last year, there may also be a Pay Period at the end of June 2017 that needs to be accounted for in the 2017/2018 year.

When creating the reports, the “From” and “To” Dates selected for End of Financial Year reporting would need to be as per these dates. This will ensure that only PPE dates falling between these dates will be captured.


If you have utilized the Period End option, but would still like to create the reports using Sage WageEasy’s Financial Year to date option, you will need to utilize an additional report Reports > Payment Summary > Financial Year Difference to balance what will be recorded on the Employee’s ATO Payment Summaries for the Financial Year 2017/2018. Refer to eKnowledge 881 for more information.

No 1. Reports > Payment Summary > Year to Date (Financial)

The Payment Summary is a record of what your Employees have been paid through Sage WageEasy for the financial year 2017/2018 as per their saved pay slips.

The Net and Tax totals from this Payment Summary Report need to balance to your external records. Your overall company financial records/reports that you could use to balance this Payment Summary Report to, may be stored in either a General Leger system (GL) or Profit & Loss system (P&L). Your Accountant will be able to assist in providing you with the figures to balance wages, tax, superannuation, union, allowances and other payments made to employees. If your business does not use one of these systems check the amounts against your bank deposit records.

Reasons for discrepancies:

• Year to date values for terminated employees may not have been brought forward from a previous payroll system if you crossed over to Sage WageEasy mid financial year.

• Pay slips may have been deleted (in this version you will no longer be able to delete pay slips after ABA files are created).

• Payments have been made to Employees outside of Sage WageEasy and recorded in your GL/Bank Deposits but not in Sage WageEasy payroll.

• Data has been entered into a ‘copy’ of the original database. • Employee files have been deleted.

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• You have set up an alternate Period End within your Period End table and not customized this Report’s date range to match (Use the Financial Year Payment Summary Difference Report).

Once a discrepancy is identified and understood, it can then be rectified. If additional Payments need to be entered a Supplementary pay slip may be used (File > Maintenance > Supplementary Payslip).

After making any required amendments, rerun this report and confirm the figures are now correct. Every other report should now balance back to this Payment Summary Report.

No 2. Reports > Union Fees > Year to Date (Financial)

Union deductions appear separately on the Employee’s ATO Payment Summary in an allocated field and from 1st July are part of STP Reporting. Printing this report will confirm those employees who have contributed to a Union and the amounts they have contributed.

If you have an alternative Period End date setup, once again, ensure you run this Report using the Start and End dates identified for financial year to capture all Pay Period Endings.

If Employees are missing from the report, but you are sure they have contributed monies, you may find that the Union has possibly been set up as a deduction allowance in error under Set Up > Allowance. Please check your list to see if a Union Allowance was created and possibly used.

If an Allowance was used you will have to transfer the value of the deduction allowance to a correctly configured union.

In the Employee file, link the employee to the correct union. Then create a Supplementary pay slip to reverse the payment from the Allowance to the union.

This is done by entering a positive amount representative of the total Union payment deducted via this Allowance.


Do not Adjust if prompted as you wish this entry to be a positive value.

Check the pay slip for Net wages that should show as a positive. Then, go back to the Adjustment screen and apply the money to the Union.

The Pay Slip result should now be a zero gross and net.

Once the reversal has been processed, please re-run the Reports to check the balance

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No 3. Reports > Allowances > Year to Date

This report will show you the YTD values that have been paid or deducted for each type of allowance. If you have an alternative Period End date setup, once again, you will need to run this report using the Start and Finish dates, as identified in the Period End screen. This will cover all the Pay period ends within this range rather than selecting the YTD (financial) option to reconcile.

Not all Allowances need to display on an employee ATO Payment Summary. Please consult with your Accountant for a full listing of allowances required to show separately on your Employees ATO payment summary. Some further information is available from the ATO.

https://www.ato.gov.au/forms/payg-payment-summary---individual-non-business/?page=4#Allowances

See Step 5 for allowance and deduction allowance configuration.


No 4. Reports > ATO Payment Summaries >ATO Payment Summary Differences

This report highlights any variations between Sage WageEasy’s Payment Summary report (saved payslips) and what is going to print on the Employee’s individual ATO Payment Summary (Employee > Payments > ATO Summaries screen). In most cases this report should appear with the message “No Matching Records Found for this report”.

Reasons that an Employee would show on this Report (discrepancies).

The Employee had two files and you have combined the amounts into one of these files to produce one ATO Payment summary for the employee. The ATO Summary screen for one of the Employee’s files was used directly for this exercise

As the ATO Payment fields in the employee files can be edited, an amount may have been accidently changed.

Once a discrepancy is identified and understood, it can then be rectified, if needed, by editing the fields under Employee File > Payments > ATO Summaries. Highlight the Gross Wages and/or Tax Paid cell and type in the ‘true’ identified amount.

Rerun the Report to check that any accidental changes have now been rectified.

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No 5. Reports > ATO Payment Summaries > ATO Payment Summary Report.

Use this report to check/balance ATO payment summaries.

This report displays the exact amounts that are going to print on the employee’s individual ATO Payment summaries. This is the final check before printing, that everything balances to your Payment Summary YTD. If you have been selecting “Financial Year to date”, as opposed to customizing your date range, you will need to run the Reports > Payment Summary > Financial Year Differences report if your Period End dates selected are not 01/07/2017- 30/06/2018.

You can now also check the figures against the new Payment Date report under Reports > By Payment Date > Payment Summary > Year to Date, the figures shown will be the figures as per the EFT Banking process date.

Total Gross – Refers to the overall Total taxable payments made to the Employee via payslips processed through the payroll. This is referencing the “Gross Wages” field from the Employee / Payments / ATO Summaries screen. Total Gross = PS Gross + Lump Sum A + B + D + E + CDEP + ETP + Pre Tax Allowances.

Total Tax is the overall Total amount of tax that has been withheld from the Employee via payslips processed through the payroll. This is referenced in the “Tax Paid” field in Employee / Payments / ATO Summaries. Total Tax = PS Tax + ETP Tax.

PS Gross – Refers to what will print in the Gross Payments field on the ATO Payment Summary. This is referencing the “Summary Gross” field from the Employee / Payments / ATO Summary screen. PS Gross = Total Gross - Lump Sum A - B - D - E - CDEP – ETP - Pre Tax Allowances.

PS Tax – Refers to what will print in the Total Tax Withheld field on the ATO Payment Summary. This is referencing the “Summary Tax” field in Employee / Payments / ATO Summaries. PS Tax = Total tax – ETP tax

The ETP Gross and ETP Tax figures can be found in the Employee file under Employee > Payments > ATO Summaries screen > ETP tab. These fields will only be accessible once the Employee has been terminated.


As of 1st July 2012 Employees may receive two ETP payment summaries. Please see ATO for more information on termination payments. https://www.ato.gov.au/forms/payg-payment-summary---employment-termination-payment-from-1-july-2012/

What is Sage WageEasy referencing in the Employment Termination Payment screen?

The below table will help you decide if any part of an Employment Termination Payment has resulted in Sage WageEasy referencing it in the ETP screen. Due to the nature of the Termination, these payments can be taxed differently (excluded or non-excluded) from other kinds of payments made on termination of employment.

No manual changes or editing can be done to the ETP screen in the employee file. Please note a manual summary will need to be created outside of Sage WageEasy if the ETP figures in Sage WageEasy are not correct. You will be required to use the following paper forms prescribed by the ATO:

• PAYG payment summary - employment termination payment (NAT 70868-06.2012) when issuing a payment summary to your employee

• PAYG payment summary statement (NAT 3447-04.2012) when lodging an annual report for the ETP payment summary paper forms.

The paper annual report will be an additional lodgement to any electronic lodgement made. The electronic file must not contain those incorrect ETP payment summary records.

Please see the section on “Excluding Employees from Sage WageEasy EMPDUPE and

ATO Payment Summary Print Process” in this manual.

What is and isn't an Employment Termination Payment?

Payments that are ETPs include: Payments that are not ETPs include:

• A gratuity or 'golden handshake' • Severance pay • Non-genuine redundancy payments • Payments in lieu of notice of termination • Unused rostered days off (RDOs) • Unused sick leave • Compensation for loss of job • Compensation for wrongful dismissal,

provided it is paid within 12 months of the actual termination of employment

• Payments for loss of future super payments

• Payments arising from an employee's termination because of ill-health (invalidity), other than compensation for personal injury.

• Payments in respect of genuine redundancy or paid under an early retirement scheme that exceed the tax-free limit

• Lump sum payments paid on the death of an employee.

• Accrued leave payments such a

� unused annual leave and/or leave loading

� unused long service leave • Payments below the genuine

redundancy or early retirement scheme tax-free limit

• Salary, wages, allowances, bonuses and incentives owing to the employee for work done or leave already taken

• Super benefits (for example, a lump sum or income stream from a super fund)

• Foreign termination payments • Certain payments for restraint of trade • Certain payments for personal injury if

you are compensated for your inability to be employed

• Employee share scheme payments • An advance or loan

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Sage Wage Easy will reference payments in the ETP screen that have been taxed at Termination Lower or Upper cap due to the nature of the Termination Payment.

It is important to consult the ATO or your Accountant if you are unsure of an amount to appear on an ETP Payment Summary.

Further information on Employment Termination Payments can be found at: https://www.ato.gov.au/Individuals/Working/In-detail/Leaving-a-job/Taxation-of-termination-payments/?anchor=If_you_are_an_employer#If_you_are_an_employer

Multiple ETP payments for same termination

ETP Code Description R The ETP was paid this year and is due to an early retirement scheme,

genuine redundancy, invalidity; or compensation as a result of personal injury, unfair dismissal, harassment or discrimination

O This code relates to any other type of ETP, also paid this year, such as a golden handshake payment in lieu of notice, payment for unused sick leave or RDO

S This code relates to ETPs paid this year, and for the same reasons as code R, but is used when the employee was paid an ETP related to the same termination in the last financial year

P The code relates to ETPs paid this year, for the same reasons as code O, but is used when the employee was paid an ETP related to eth same termination in the last financial year

For more information about completing the PAYG payment summary, refer to

How to complete the PAYG payment summary - employment termination payment (NAT

70996-08.2013) (NAT 70996)

https://www.ato.gov.au/Forms/PAYG-payment-summary---employment-termination-payment-from1-July-2012/

Excluding Employees from Sage WageEasy EMPDUPE and ATO Payment Summary Print Process:

To exclude employees from the ATO Payments Summary Print Process and EMDUPE file:

Employee File > Payments > ATO Summaries > Delivery then tick Exclude this employees ATO Payment Summaries from export/print process.


Amended Payment Summaries

An original payment summary and EMPDUPE file must have been produced in Sage WageEasy.

However, any error identified after the original payment summary and EMPDUPE file produced cannot be fixed in Sage Wage Easy. You will not be able to produce an amended ATO Payment Summary from Sage Wage Easy and you will need to manually lodge the amended payment summary outside of Sage Wage Easy.

You cannot change the information on a payment summary after you have either:

• given it to your employee • provided your PAYG withholding payment summary annual report to us (The

ATO).

If you find a mistake with any amount or ETP code after giving the payment summary to your employee or the ATO, you should complete a manual amended payment summary, placing 'X' in the amending a payment summary box.

If there is a change in circumstances and you have not issued the payment summary to your employee, or lodged your annual report, you can complete the payment summary according to the updated circumstances.

For example, if an employee retires from their position on a certain date, and that former employee subsequently dies, then the payment and payment summary should be completed as a death benefit ETP and be made to the dependant, non-dependant or trustee of the deceased estate

Please always confirm with the ATO where in doubt.

Individual non-business - income Type code

In 2016/2017, a new Type box was added to the Gross Payments field. The box displays one of the following codes, based on the employee's income type.

Below is a summary of the codes that will display.

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Code Description

S This code is displayed for all employees that are not attached to the Working Holiday Maker tax table.

H The employee is a working holiday maker. The Working Holiday Maker Tax Table is selected in the employee file for this code to be displayed on the payment summary.

For more information about producing ATO Payment Summaries for Working Holiday Makers, refer to Appendix 3 – EOY Reporting for Working Holiday Makers.

What do the Lump Sum fields in the ATO Payment Screen mean?

Lump Sum Codes

Lump Sum Description

Lump Sum A For unused long service leave that accrued after 15 August 1978 but before 18 August 1993; or

For unused holiday pay and other leave related payments that accrued before 18 August 1993; or

For unused long service leave accrued after 15 August 1978, or unused holiday pay or related payments, where the amount was paid because you ceased employment under an approved early retirement scheme, because of invalidity or because of bona fide redundancy.

This entire amount is taxable, but the maximum rate of tax is 30% plus the applicable Medicare levy rate.

Lump Sum B For unused long service leave which accrued before 16 August 1978. Average marginal rate on 5% of amount.

Lump Sum D A tax-free bona fide redundancy payment or approved early retirement scheme payment. This amount is not taxable and should not be included on your income tax return.

Employment Termination Payments (ETP)

Cash lump sum on termination of employment, you will have been issued a separate ETP payment summary showing full details of the payment.

Lump Sum E or Lump Sum payment in arrears

For back payment which accrued more than 12 months ago. This entire amount is taxable, but a tax rebate (also known as a tax offset) may be available.

Individual non-business - R or T codes for Lump sum A

When an employee has been paid an amount that qualifies as Lump Sum A, you may see the code R or T displayed next to it on the payment summary.

Code Description

R The payment was due to a genuine redundancy, invalidity or early retirement scheme


T The payment was made for any other reason than the ones mentioned above.

Reporting Rules for a Lump Sum E payment

Lump Sum Payments in arrears that are equal to or greater than $400.00 must be included on the Employee’s ATO Payment Summary, against label Lump Sum E. You must also provide the employee with a letter that details over which financial years the amount was accrued and the gross amount which accrued over those years.

Where the Lump Sum Payment is less than $400.00, the gross amount should be included against the Gross Payment on the Employee’s ATO Payment Summary. No explanatory letter to the employee is required in this instance.

Further details can be as follows:

https://www.ato.gov.au/Rates/Schedule-5---Tax-table-for-back-payments,-commissions,-bonuses-and-similar-payments/

ATO Payment Summary “Your privacy”

The employee PAYG Payment Summary has additional information added to it relating to employee privacy

Please refer to the link below which will now appear in all ATO payment summaries produced for employees

https://www.ato.gov.au/About-ATO/Access,-accountability-and-reporting/Your-privacy/

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Chapter 3

ACTION END OF FINANCIAL YEAR - 2017/2018

Step 10: Backup Company Database

We encourage your taking a backup at this point in your End of Year Process.

File > Close Company or File > Backup/Restore > Backup.

Select the location or file path using the ellipsis (the 3 dots), to where you would like to save this back up to. Always save the backup locally or to the Network drive first before copying to a USB or memory stick.

If your database is not shown with at tick in the window, select Add at the top to trigger a windows browser to find where your database lives on the network or local drive.

Ensure you are the only User currently accessing the database. Select Start to activate the backup.

If you have multiple databases, backing up from the file menu will allow you to do multiple backups involving all company databases at once.


Step 11: Produce Employee ATO Payment Summaries

We recommend taking a backup before Payment Summaries are produced. Once you have produced Payment Summaries, to reprint your summaries you will need to restore or run a user defined query to enable reprinting of the summaries.

Ensure you save a copy of the backup both locally and to an external drive or memory stick. If for any reason the process is interrupted and there is a need to reprint your summaries, you will then have the choice to either restore this back up and rerun, or use a query that will untick the printed box in each employee file, enabling you to reprint your summaries.

Please check under HR / User defined / for a Query called “Reset Printed Flag for ATO Payment Summary”. If you are unable to locate this Query in your list please email [email protected] for this Query.

Now that you have reconciled YTD values, produced final reports for YTD information and identified discrepancies and corrected them, you are ready to produce payment summaries. Production of payment summaries is a significant processing event. It involves more than just the production of a summary of the amounts paid to and withheld from employees over the financial year. Information that is used to create payment summaries is also flagged for inclusion in the ATO Export file(EMPDUPE).

A payment summary must be supplied to each employee(payee) no later than 14 July. Employees terminated during the financial year and who do not have any reportable fringe benefits should be supplied with a payment summary within 14 days of the termination date. The payment summary records payments that you made to an employee or payee and amounts withheld over the financial year.

There are 2 types of payment summaries that are produced by Sage WageEasy. All payment summaries display whole dollar amounts only, cents are truncated.

Payment Summary Type

Sage WageEasy will produce this type of payment summary for:

Types of amounts shown:

Individual non-business

Employees whose basis of payment is Full time, Part time or Casual

Payments including salary and wages, allowances, bonuses and commissions, reportable fringe benefit amounts, etc.

Withheld amounts including tax, deductions, reportable super contributions, etc.

Employment Termination Payment (ETP)

Terminated employees who received an employment termination payment. Note that these employees will receive an individual non business payment summary as well

ETP amounts paid in relation to an early retirement scheme, genuine redundancy, invalidity, certain types of compensation or other payments as specified by the ATO

Tax withheld from the ETP amount, super calculated, etc.

Producing the ATO Payment Summaries

To produce the payment summary, go to Reports > ATO Payment Summaries > Print Individual ATO Payment Summaries.

This launches the ATO Payment Summary Print Wizard.

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Select Next.

In turn this offers details of your financial year. Ensure you enter an appropriate authorised signatory for your business and your Payment Summary Sign Date.

Select Next.

If the Employees have been allocated with a preferred method of delivery apart from Printing, please tick the “Use Employee destination (if specified)”.


Select Next.

The three choices of ATO Payment Summary Delivery are represented by symbols alongside each name.

The Summary will save to a folder

The Summary will be emailed.

The Summary will print.

You can sort the list by delivery method (e.g. printer, email, save to file) by clicking on the Header above the symbols or back on Employee Name, to return to employee sort order.

If you have selected options other than printing the ATO Payment Summaries we recommend that each delivery method be completed in separate processes, that is, email payment summaries in the first run, save to employee files in a second run and print in a third run.

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Click on Select All, or if creating in batches, ensure only the boxes for those Employees you want to send in this batch are ticked. You can then select to do a separate run for each format if required. Once you have made your choice, select Next.

Depending on the number of employees you have, or on the capabilities of your printer, if you have less than 30-40 employees, Select All. If you have more than this, we would recommend printing them in batches.

This above next screen offers a count for each method of delivery. When you select Next, the ATO Payment Summaries will be produced to their respective destinations. If any errors are present, an error log will appear (which can be printed) and these Employees will not have a tick placed in their printed box within the Employee File under > Payments >ATO Summaries screen.

You will need to identify why this error occurred, rectify if possible, and then rerun the wizard.

If no Errors were encountered after selecting Next, the below screen will appear to advise you that the Printing is complete.


If you need to rerun the wizard for all Employees run the user-defined query HR > User defined > Reset Printed Flag for ATO Payment Summary.

Refer to eKnowledge if you do not have this query in your system.

Alternatively restore from the backup taken before ATO Payment Summary production.

If you need to reprint a single Employee ATO Payment Summary

• Go to the Employee’s file then Payments > ATO Summaries • Untick the printed box as illustrated below and follow the above steps again for

Printing the ATO Payment Summaries

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Step 12: Produce ATO Export File (EMPDUPE)

Navigate to Reports > ATO Payment Summaries > Export File.

This triggers the ATP Payment Summary Diskette Wizard. Choose Next.

Select the financial year ending 2018 and then select Next.


Select the file path that you would like to save the file to and choose Finish.

Please remember not to open the original EMPDUPE file that has been created from Sage WageEasy. Opening and Closing this File can sometimes change the original intended format for the ATO. This can often be the cause of a File to be rejected by the ATO.

If, however, you do indeed wish to view this file, please take a copy of it and save it to another location. Please use this copied EMPDUPE as your viewable file.

Lodging of the EMPDUPE file

The EMPDUPE files can be uploaded via the File transfer option provided by the ATO.

https://www.ato.gov.au/General/Online-services/In-detail/File-transfer/

To use the File transfer function, you will need to follow the below steps:

Step Function

1 Prepare your files using Sage Wage Easy

2 Log in to the portal from ato.gov.au using your AUSkey

3 Select Lodge file under the File transfer heading located in the left-hand menu

4 Opt in or out of receiving an email notification when validation of your file has been completed

5 Submit your EMPDUPE file (do not send scanned documents), where it will be checked for format compatibility and data quality

6 Receive confirmation your file has been received, which will then be validated for errors and warnings

7 Receive an email to inform that a validation report is available to view (if you have selected to receive a notification)

8 Download a validation report to see if your file has been lodged or if it contains any errors to correct.

To change where the file will be saved use the ellipsis (three dots) to alter the destination path if required.

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Commonly Reported errors in the EMPDUPE file

Some of the common errors that may occur when lodging online include:

• The annual report file cannot be located on the hard drive (EMPDUPE, NOABN or FRW) – you must use a complying payroll software product to generate the annual report file.

• Income amount fields – invalid characters – remove blanks or non-numeric characters. • Tax withheld – the tax withheld must be less than or equal to the sum of the income fields in

the payment summary reported. • Amendment indicator – the Amendment indicator field must not be blank. The Amendment

indicator field must contain either A or O. • Supplier contact details (the supplier contact is the person lodging the report) – the supplier

contact name and contact phone number must be completed. Refer to your software product manual to find out where to enter the supplier information within the payroll product.

• Error Message SS – E039 – we could not accept the file as you are not authorised to return files for the ABN contained in the file Check that the ABN recorded in the activated AUSkey matches the ABN in the supplier data record of the file being sent.

https://www.ato.gov.au/Business/PAYG-withholding/In-detail/Reporting-and-paying-to-us/Lodging-your-PAYG-withholding-annual-reports-online/

The ATO will not accept EMPDUPE files submitted via ECI for this financial year i.e. 2017/2018. All EMPDUPE files must be submitted via the ATO Business Portal.


Step 13: Backing up of your Database

We encourage your taking a backup at this point in your End of Year Process.






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Step 14: Housecleaning (optional)

File > Maintenance > House Cleaning

The House Cleaning function is designed to remove pay slips and terminated employee records from the previous financial years. Before you commence this procedure, you will need to archive a backup of your current database.

Not everyone will need to perform a houseclean. You may only need to do one depending on the size and performance of your database.

Employee records must be kept for 7 years after the date on which the entry was made so it is important to archive your backups to cater for this period of time.

eKnowledge 654 explores the House Cleaning in detail.


Chapter 4

PREPARATION NEW FINANCIAL YEAR - 2018/19

Step 15: Update of Tax Tables to 2018/2019

Updated tax tables for the 2018-2019 Financial Year will be provided in the June email communication and via the Sage WageEasy eKnowledge On-line Support Portal. The tables will incorporate any changes released by the ATO.

To run the update for the tax tables, follow these steps.

Step Function

Step 15.1 Having installed the June 2018 Release of Sage WageEasy the new tax tables will be included in the Association folder C:\Users\Public\Public Documents\Wage Easy Payroll\Association Data\Australia.

Alternatively, you can download the tax table zip file via our Sage WageEasy eKnowledge On-line support portal. Unzip and save the attachments to a location that is easily accessible (such as either your Desktop or your C: local disk drive). The result will be a folder in that location named Tax Tables (2018-19).Pdl

Step 15.2 Backup (or copy) your database(s) to another location BEFORE going any further.

Step 15.3 In Sage WageEasy, select Setup > Associations > Tax Tables then Edit > Internet Tab.

Step 15.4 Tick ONLY the Tax Tables & Rebates box.

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Step 15.5 You are now ready to update the Tax Tables. Select Update Now,

Click Next

Then Load from Disk File. In the example above I unzipped the file in my c:\payroll folder.


Select Next, then Finish.

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Step 15.6 Once updated please CHANGE your pay period ending (PPE) date in Sage WageEasy to a date in July 2018, then from Setup > Tax > Tables you will see in the description of each tax scale the date 2018-19.

Step 15.7 Please note that the updated threshold amounts for termination tax are included with this Tax Table, so once you have completed this update any terminations processed from that date will be taxed based on this updated rate. If you have any termination pays to process prior to 30 June 2018, you should defer loading the updated Tax Tables until you have processed these terminations.

Step 15.8 Once you have confirmed that the Tax Tables are updated, you are ready to process your first pay in July 2018. If you are still processing pays in June, or are yet to complete your End of Year processing you need to make sure that you change the Pay Period Ending date back to the appropriate date in June 2018.

Step 15.9 Repeat the Steps 15.2 - 15.8 for any additional databases (companies) you may have.


Step 16: Update of Modern Awards Supported by Sage WageEasy

Sage WageEasy provides updates to the following Modern Awards free of charge:

• General Retail Industry Award 2010 • Hospitality Industry (General) Award 2010 • Registered and Licensed Clubs Award 2010 • Restaurant Industry Award 2010

Updated pay rates, allowances and award items for these four Awards are sent every year in communications to our customers along with instructions on how to update their company file.

Updates to the award must be performed before you start processing payroll for the first complete pay run in July.

When updating the award, tick the relevant items i.e. Allowances, Awards or Pay rates to update.

Any manual changes in the Award will be overwritten when updating the award.

Always backup before updating the awards in the company database.

Other Modern Award Updates

If you pay your staff under another Modern Award apart from the modern awards listed above or an EBA, Sage WageEasy will be able to provide you with the update at an additional cost saving you time configuring and creating the award or the EBA from scratch. Please contact the Support Help Desk for further details.

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Step 17: Withholding for 27 fortnights/53 weeks (if Applicable)

There are two scenarios where this may affect you as a weekly or fortnightly Payer.

1. Some financial years, your pay period end dates fall such that you will find there are 27 rather than 26 fortnightly pays and 53 rather than 52 weekly pays.

2. You may change your financial year boundaries as discussed in Preparation Step 1 resulting in an additional pay period end being captured in the next financial year.

The withholding weekly and fortnightly tax tables published by the ATO are based on the normal number of pays in a year (26 fortnights or 52 weeks). Tax rates increase as taxable incomes increase, therefore, an additional pay period in a financial year will mean that amounts withheld from salary and wage payments made to many payees will not cover the amount payable when they lodge their tax returns.

If the payees will receive an additional pay during the year, payers are encouraged to:

• Inform your payees about this issue, and • Put processes in place so payees can request additional amounts be withheld, that is,

using a tax adjustment in the employee file

Employee Details > Payments > Tax > Adjustment

You will need to work out ahead your first pay period in 2018/2019 if the above applies to your organisation based on your Sage WageEasy PPE dates and the actual EFT payment dates for the upcoming 2018/2019 financial year.

Sage WageEasy Reference: Payments > Tax > Adjustment

For more detailed information and scenarios please consult the ATO website:

https://www.ato.gov.au/business/payg-withholding/in-detail/reporting-and-paying-to-us/withholding-for-27-fortnightly-or-53-weekly-pays-in-a-year/

You will need to work out ahead your first pay period in 2017/2018 if the above applies to your organisation based on your Sage WageEasy PPE dates and the actual EFT payment dates for the upcoming 2017/2018 financial year. Examples of possible scenarios whereby the above may occur are provided in the following tables.


Step 18: Superannuation Obligations 2018/2019

Setup > Award > Select the award > Payments > Superannuation

Superannuation parameters need to be set up as per the Super Guarantee Levy (SGL) as set by the ATO as a minimum or in accordance with your association guidelines. Payment conditions do need to be considered carefully as they will affect the calculation.

Remember the SGL calculation is a monthly calculation, rather than a per pay calculation. Therefore, if checking a super calculation for an employee, it needs to be done in context of all pays saved in the month, rather than a single pay slip.

The minimum level of employer superannuation guarantee contribution i.e. SGC has been frozen to 9.5% but the “maximum contribution base” i.e. “Superannuation Guarantee Cap” has increased from $52,760 to $54,030. It is important the you check each Award configuration in WageEasy has the “Superannuation Guarantee Cap” increased in accordance with the applicable value for 2018/2019.

If a super adjustment is required, do this in the last pay of the month as it will affect your super tracking and may result in underpayment of superannuation to your employees.

The screenshot below is an example of the Superannuation Setup for the Hospitality Industry General Award. Note the Superannuation Guarantee Cut-in Amount is $350. Please check with your relevant association or Fair Work if unsure.

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The next screenshot is an example of the Superannuation Setup for all other NES Awards. Note the Superannuation Guarantee Cut-in Amount is $450. Please check with your relevant associations or Fair Work if unsure.


Step 17: Backing up of your Database






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EOFY Resources

There are a number of user-defined reports, queries and factsheet that will assist you with your EOFY procedures. A selection of these EOFY Resources can be downloaded from our Sage

WageEasy eKnowledge Online Support Portal. Authorised contacts can now access the Sage WageEasy eKnowledge Online Portal and benefit from anytime access to an extensive knowledge base of FAQs and product support queries to assist with your payroll processing. A summary of the resources provided can be found below. Click the below link to log-on, access and search the portal:


Queries

Queries Description

Capitalize State The “State” field must be entered in Capitals as required by the ATO for the Empdupe file. In Sage WageEasy version 5.2.3.7296 or higher, the “State” field will default to capital letters when entering new details. However for data entered before the upgrade to version 5.2.3.7296 you may have the “State” field in a mixture of lower case and upper case. To convert all the fields into the proper case without having to correct it individually you can run the query “Capitalize State”

Delete Redundant 2012 Tax Tables

This query is to delete all the redundant tax tables that had the labelling “Previously” (2012) on them

Employees Still on Redundant 2012 Tax Tables

This query is to check if any employees are attached to the old redundant 2012 tax tables

Fix Super RESC Flag 2018 If the box was not ticked to report the super contribution as “RESC” and was identified at a later stage these amounts may not appear on the ATO payment summary as “RESC”. To apply this condition “show as RESC” for all the payments made previously you need to run the “Fix Super RESC” flag

Reset Printed Flag for ATO Payment Summary

In order to reset all the printed flags in the employee’s file to be able to re-print the Individual ATO Payment summary you will need to run this query

Set Employee Email for ATOPS delivery

To automatically tick the box to enable email delivery for all the employees in the database this query will need to be run


Reports

Reports Description

Address Labels This report can be printed on labels giving customers ready labels to stick on envelopes

ATO Payment Summary Issued This report indicates ATO payment summaries issued already for employees during the current financial year

Employee Address & Email This report shows all the employee’s home address and default email address

Employee Address & Tax File Number Including State

This report shows all employee’s home address, tax file number including the state the employee comes from

Employee Address & Tax File Number (Postal Address)

This report shows all the employee’s postal address and tax file number

Payment Summary - Gross including Salary Sacrifice and Fringe Benefits by State

This report shows the Gross income including salary sacrifice, fringe benefits along with the state

Payment Summary - Gross including Salary Sacrifice and Fringe Benefits

This report shows the Gross income including salary sacrifice and fringe benefits

Payment Summary - Gross including Salary Sacrifice and Fringe Benefits Total

This report shows the Gross income including salary sacrifice and fringe benefits with the total of all the figures at the end of the report

Staff Listing (Current) by Tax File Number

This report shows the current staff listing by tax file number

Super By Department With Gross Total

This report show shows the super by department with a gross total giving us a break down of salary sacrifice, employer additional, SGL and employee contributions

Super By Department This report show shows the super by department giving us a break down of salary sacrifice, employer additional, SGL and employee contributions

Untaxed Allowance This report shows all the untaxed allowances processed

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Conclusion

Year End processing need not be a stressful event. By preparing early and following these steps, your process should be error free and efficient.

It is important to remember that Sage WageEasy allows you to process in the new financial year 2018/2019 even if you have not completed your year-end processing 2017/2018 so there is no need to hurry through the process.

We are here to help you through so please contact us as required. Don’t forget to have the manual and your Sage WageEasy customer number handy when you call.

Support Phone: 1300 924 332

Support Email: [email protected]

Sage WageEasy e-Knowledge Online Support Portal:


If you have any feedback in relation to this or any other area of Sage WageEasy, please email [email protected]


Appendix 1 - Sunday Penalty Rates

The Fair Work Commission has handed down its decision on how Sunday penalty rates cuts will be implemented, with workers to feel the pinch from July 1.

FAST FOOD

• Full-time and part-time employees will have wages cut from o 150 % to 145 % on July 1 2017 o 135 % on July 1 2018 o and drop to 125 % in 2019

• Casual employees will have their wage cut from o 175 % to 170 % on July 1 2017 o 165 % on July 1 2018 o before the final cut to 150 % in 2019

HOSPITALITY

• Full-time and part-time employees will have wages cut from o 175 % to 170 % on July 1 2017 o 160 % in 2018 o then 150% in 2019

There will be no change for casual employees

RETAIL

• Full-time and part-time employees will have wages cut from o 200 % to 195 % on July 1 2017 o 180 % in July 2018 o 165 % in 2019 o and finally to 150 % in 2020.

• Casual employees will go from o 225 % to 220 % in July 2017 o 205 % in 2018 o 190 % in 2019 o and 175 % in 2020

PHARMACY

• Full-timers and part-time employees will drop from o 200 % to 195 % on July 2017 o 180 % in 2018 o 165 % in 2019 o and 150 % in 2020

• Casual employees will drop from o 225 % to 220 % from July 2017 o 205 % in 2018 o 190 % in 2019 o with a final cut to 175 % in 2020.

• PUBLIC HOLIDAY RATES • All sectors plus restaurants • Full-time and part-time drop from 250 % to 225 from July 1 2017 • Casual rates drop from 275 % to 250.

Read more at https://finance.nine.com.au/2017/06/06/09/56/how-the-penalty-rate-cuts-will-affect-you#XYFO2d40vrcdotbA.99

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Appendix 2 - User-defined Reports

You may find that some reports referred to in this manual are not present in your system. In which case Sage WageEasy support may send you the associated file or you may find it via eKnowledge.

Once received, this User Defined Report will need to be saved into the Reports folder from which the database reads. To identify the location of this folder, please go to Setup > Preferences > Configuration > File Locations and check the “Path” field to identify where on your local computer or Network drive the folder is located.

Please refer to eKnowledge 678 for more information.

End of Year Notes 2017/2018 · 2018. 6. 25. · End of Year Preparation Checklist Section 1:...

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Transcript of End of Year Notes 2017/2018 · 2018. 6. 25. · End of Year Preparation Checklist Section 1:...