Payroll End-of-Year 2016/17 Processing (Australia).

Transcription

1 Payroll End-of-Year 2016/17 Processing (Australia). Export date: 29 May 2017

2 Attaché Software Australia Pty Ltd ACN ABN Level 5, 118 Talavera Road, Macquarie Park NSW 2113 Australia PO Box 1824 Macquarie Centre, North Ryde 2113 Australia Tel Fax Attaché Software New Zealand Pty Ltd 48 Greys Ave, Auckland New Zealand Tel Fax info@attachesoftware.com Website: Attaché Software Australia Pty Limited

3 Contents Which version for printing payment summaries and creating Mag Media file? If you are using Attaché BI: If you are using Attaché Accounts and Payroll: Which version for Working Holiday Maker payment summaries? Producing payment summaries for Working Holiday Makers Reportable fringe benefits information Reporting amounts on payment summaries Changes to reporting fringe benefits on payment summaries Processing reportable fringe benefits (non-exempt) Processing reportable fringe benefits (non-exempt and exempt) Creating a copy of your payroll data Creating a copy of your data (Archive and Restore method) Creating a copy of your data (Copy Data Files method) Payroll EOY Reconciliation Payroll EOY Reconciliation Worksheet Print PAYG Tax Reconciliation Report Print Payment Summary Details Report Print Pay Summary Report Validate payment summary/magnetic Media data for the ATO Create payment summaries Print payment summaries Print Employment Termination Payment (ETP) Summaries Create Magnetic Media File General Submitting details to the ATO Before processing July pays Process end of year in Payroll Download and import Tax Scales for 2017/ Correcting payment summaries Incorrect payment summaries (before Mag Media file) May 2017 Page 3 of 40

4 Incorrect payment summaries or Mag Media file (not yet submitted to ATO) Incorrect payment summaries (issued to employees) and incorrect Mag Media file (submitted to ATO) ATO could not read magnetic media file (All payment summaries correct, no changes required) Checking and correcting ETPs Checking ETPs already entered in Attaché Payroll Correcting an ETP Deleting employees Information messages and recommended action Payroll End-of-Year Checklist Process Last Pay for Year Reconcile Complete Your Tax Reporting Process End of Year in Live-Payroll-Company Archive End-of-Year Data (post processing) Perform Housekeeping (can be done at any time throughout the year) May 2017 Page 4 of 40

5 Payroll End-of-Year 2016/17 Processing (Australia). This area contains information and checklists for payroll end-of-year 2016/17 processing for Australia as well as information about preparing for the new financial year. It is suitable for both Attaché BI Payroll and Attaché Payroll. Aimed at supervisors, the information is of a generic nature and not intended as definitive instructions for end-of-year processing. We recommend you discuss your specific end-of-year procedures with your Attaché consultant. 29 May 2017 Page 5 of 40

6 Which version for printing payment summaries and creating Mag Media file? For most employers, the requirements for end-of-year processing are the same as for the 2015/16 year end. If you are using Attaché BI: Minimum version 3 Recommended version 4 (Attaché BI versions 2 and 3 resolve some issues in earlier versions related to modifying general ledger batches, but it does not fix such batches retrospectively. To ensure no further data anomalies exist on your general ledger data, it is imperative that you are on Attaché BI version 3 (or later) before you start processing transactions in the new financial year.) If you are using Attaché Accounts and Payroll: Minimum version 16 Recommended version 17 For employers that have employees under the Working Holiday Maker program ("backpackers tax") or registered exemptions from fringe benefits tax, payment summary requirements have changed. If you have employees under the Working Holiday Maker program, see Which version for Working Holiday Maker payment summaries (see page 6). If you have employees with exempt fringe benefits, see Changes to reporting fringe benefits on payment summaries ( To check your current version, in Attaché choose Help About. Which version for Working Holiday Maker payment summaries? New tax rates for employees under the Working Holiday Maker (WHM) program (visa 417 or 462) came into effect on 1 January As a result, you will need to issue a WHM payment summary to these employees. In addition, where a WHM employee worked both before and after 1 January, you will need to issue two 2016/17 payment summaries one for each period. The WHM payment summary is available in Attaché BI Payroll version 7. Check your version of Attaché Payroll. (To do so, in Attaché choose Help About and note the version.) If your version is 17 or earlier, you should contact your Attaché consultant now about moving to Attaché BI. Alternatively, you will be able to issue the required payment summaries to relevant employees using the ATO manual forms. If your version is 4 or earlier, we suggest you talk to your Attaché consultant about upgrading. 29 May 2017 Page 6 of 40

7 If your version is 6, you will simply need to upgrade to version 7. Further information Read about Working Holiday Makers ( /coming-to-australia/working-holiday-makers/) at the ATO website For more information about the new tax rates see Working Holiday Maker reforms ("backpackers tax") ( Producing payment summaries for Working Holiday Makers Where a Working Holiday Maker (WHM) employee worked both before and after 1 January 2017, you will need to issue two 2016/17 payment summaries one for each period. This requires affected employees to have two Employee Codes to ensure each payment summary has the correct dates and amounts. Overview Prior to creating and printing payment summaries, carry out the following tasks for affected employees: 4. Enter an adjustment pay to reverse the gross payments and tax for the period 01/07/ /12 /2016. Add the new employee. Enter an adjustment pay for gross payments and tax for the period 01/07/ /12/2016. Change original employee's Tax Certificate Category to H = Working Holiday Maker. After completing the above tasks, you can then create and print summaries in the usual way. Each of these tasks are described below. Reverse gross earnings and tax amounts for period 01/07/ /06/2016 To get the amounts to reverse, print the Pay Summary Report (Period End Payroll Payment Summaries Pay Summary Report) with the following selection: a. b. c. d. Print Sequence = Employee Code Date range 01/07/ /12/2016 and choose Date Paid Print Line Details = NO Include Terminated and Inactive employees Enter an adjustment to reverse (Transactions Payroll Process Payroll Adjustments). Choose employee code 4. Function = start with empty pay 29 May 2017 Page 7 of 40

8 Pay Description = Reversal 01/07/16-31/12/16 wages Payment required = NO Leave Accrued = NO Accept (F9) Choose new line type = Other Rate Choose Code for normal or ordinary hours Hours = 1 Amount = negative taxable amount Eg Accept (F9) Click in the Tax field and type the negative tax amount Eg Finish and accept negative pay Check pays - pay period and date paid = 31/12/2016. Check Adjustment Pays ONLY. Print reports as required and Process Payroll Add new employee Add new employee (Masterfiles Payroll Employee Details Maintain). Note: this will be a terminated employee Required fields - Use Print List Wizard to print a report. Location (if applicable) Employee code Employee Name Address details Start date Termination date of 31/12/2016 Home phone or mobile number Gender Date of birth Employment status T = Terminated Tax File number, Tax Code and all other fields on the Tax details tab address for payment summary 29 May 2017 Page 8 of 40

9 Enter gross earnings and tax amounts for period 01/07/ /06/2016 To get the amounts to, print the Pay Summary Report (Period End Payroll Payment Summaries Pay Summary Report). Report selections: a. b. c. d. Print Sequence = Employee Code Date range 01/07/ /12/2016 and choose Date Paid Print Line Details = NO Include Terminated and Inactive employees Enter an adjustment pay - go to Transactions Payroll Process Payroll Adjustments Choose the NEW employee code Choose YES when the message Terminated employee, Continue Function = start with empty pay Pay Description = Wages 01/07/16-31/12/16 Payment required = NO Leave Accrued = NO Accept (F9) Choose new line type = Other Rate Choose Code for normal or ordinary hours Hours = 1 Amount = taxable amount Eg Accept (F9) Click in the Tax field and type the tax amount Eg. 389 Finish and accept pay Check pays - pay period and date paid = 31/12/2016. Check Adjustment Pays ONLY. Print reports as required and Process Payroll Change original employee Tax Certificate Category to WHM Choose Masterfiles Payroll Employee Details Maintain. Under the Tax Details tab, change the Tax Certificate Category to H = Working Holiday Maker. Choose Accept (F9). 29 May 2017 Page 9 of 40

10 Create and Print Payment Summaries See Create Payment Summaries ( See Print Payment Summaries ( 29 May 2017 Page 10 of 40

11 Reportable fringe benefits information Changes to reporting fringe benefits on payment summaries (see page 12) Processing reportable fringe benefits (non-exempt) (see page 12) Processing reportable fringe benefits (non-exempt and exempt) (see page 14) Reporting amounts on payment summaries Employers subject to FBT are required to record the grossed-up taxable value of reportable fringe benefits Non-exempt and exempt on the payment summaries of any employee who receives relevant benefits with a total taxable value exceeding $2,000. The gross-up rate of 9608 is used when determining the amount to be shown on the employee's payment summary. This is regardless of whether the benefits provided are Type 1 or Type 2 benefits. This amount is known as a reportable fringe benefits amount and is calculated using the following formula: Individual fringe benefits amount divided by (1 FBT rate) Note: The higher gross-up rate formula is not used to calculate an employee's reportable fringe benefits amount. Example The total value of benefits provided to an employee is $3,000. If the rate of tax is 49%, the value of reportable fringe benefits is calculated as follows: $3, divided by (1 0.49) = $3, divided by = $5,882 (in whole dollars) The reportable fringe benefits amount relating to benefits provided during the FBT year (1 April to 31 March) is reported on the relevant employee's payment summary for the corresponding income year. For example, you would show the value relating to benefits provided during the FBT year 1 April 2016 to 31 March 2017 on the employee's payment summary for the income year 1 July 2016 to 30 June REF: SF 2746, 2779, 2780, May 2017 Page 11 of 40

12 Changes to reporting fringe benefits on payment summaries Some employers are eligible for an exemption from fringe benefits tax (FBT) under section 57A of the Fringe Benefits Tax Assessment Act 1986 (FBTAA 1986). Employers that may have been granted an exemption by the ATO include some registered public benevolent institutions, public hospitals, health promotion charities and public ambulance services. Because exemptions apply to only certain fringe benefits, you might need to issue two payment summaries to an employee. first payment summary will show the grossed up value of non-exempt FBT amounts as well as all income and tax withheld. second payment summary will show the grossed up value of exempt FBT amounts only. A new payment summary layout that includes the FBT-exempt indicator, as well as other related changes, is included in Attaché BI Payroll version 7. Further information Read about Non-profit organisations and FBT ( /In-detail/Employers-guide/Non-profit-organisations-and-FBT/) and Additional information Is the employer exempt from Fringe Benefits Tax? ( /resource-attachments/fringe_benefits_tax_exempt_type_field_instructions.pdf) at the ATO website. Processing reportable fringe benefits (non-exempt) If the value of certain reportable fringe benefits (non-exempt) provided exceeds $2,000 in an FBT year (1 April to 31 March), you must report the grossed-up taxable value of those benefits on your employee s payment summary for the corresponding income year (1 July to 30 June). For more information about reportable fringe benefits see Fringe benefits tax rates and thresholds ( at the ATO website. Check your payroll setups The FBT rate and threshold amount for the FBT year ending March 2017 are 49% and $2,000 respectively. To check that your setups are correct, choose Setups Payroll Options Payroll Options. Select the Tax Details tab to check the FBT rate and threshold amount. Check your Reportable Fringe Benefit Codes Choose Setups Payroll Employer Contributions Maintain to check your settings. Make sure you have set up an Employer Contribution Code that has a Reportable Fringe Benefit/Non-cash Benefit (Non-exempt). Contribution Category of 29 May 2017 Page 12 of 40

13 Processing fringe benefits Choose Transactions Payroll Adjustments Create or Modify. Enter an adjustment pay starting with an empty pay. Enter a Pay Description, for example, FBT 16/17 Choose New Line Type and select E = Employer Contribution/Super and then choose the Contribution Code for Reportable Fringe Benefits (non-exempt) Enter the net amount (that is, the non-grossed up amount) of reportable fringe benefits (non- exempt) Check the pays and ensure that the pay period ending and date paid dates are set to 31/03/2017. Run any pre-process reports, backup your payroll data and update pays. Check that the FBT has been entered correctly Choose Masterfiles Payroll Employee Details Enquire. Enter the Employee Code, select Summary (F7) then Itemise (F6) and select Employer Contributions. The non grossed up FBT amount is displayed for non-exempt fringe benefits. Choose Period End Payroll Payment Summaries PAYG Tax Reconciliation Report to print the PAYG Tax Reconciliation Report. The net FBT amount and the grossed-up value is displayed. Reversing FBT transactions Choose Transactions Payroll Adjustments Create or Modify. Enter the Employee Code and press Enter. In the Function field choose Find (F2) and select O = Add new pay start with Other pay. Press Enter. In the Adjustment Pay Number field, choose Find (F2) and select the FBT pay you wish to reverse. Press Enter and type a description in the Pay Description field. Select Reverse (F8) and select Yes to the confirmation message, Ok to reverse pay? Choose Accept (F9). The line total should be a negative amount. Check the pays and ensure the pay period ending and date paid date is the same as the pay you are reversing. Run any pre-process reports, backup your payroll data and update files. Choose Transactions Payroll Adjustments Create or Modify and re-enter the FBT transaction. REF: SF May 2017 Page 13 of 40

14 Processing reportable fringe benefits (non-exempt and exempt) If the value of certain reportable fringe benefits (non-exempt) and certain reportable fringe benefits (exempt) provided exceeds $2,000 in an FBT year (1 April to 31 March), you must report the grossed-up taxable value of those benefits on separate payment summaries for the corresponding income year (1 July to 30 June). For more information about reportable fringe benefits see Fringe benefits tax rates and thresholds ( at the ATO website. Check your payroll setups The FBT rate and threshold amount for the FBT Year ending March 2017 are 49% and $2,000 respectively. To check that your setups are correct, choose Setups Payroll Options Payroll Options. Select the Tax Details tab to check the FBT rate and threshold amount. Check your Reportable Fringe Benefit Codes Choose Setups Payroll Employer Contributions Maintain to check your settings. Make sure you have set up an Employer Contribution Code that has a Reportable Fringe Benefit/Non-cash Benefit (Non-exempt). Make sure you have set up an Employer Contribution Code that has a Reportable Fringe Benefit/Non-cash Benefit (Exempt). Contribution Category of Contribution Category of Processing fringe benefits Choose Transactions Payroll Adjustments Create or Modify. Enter an adjustment pay starting with an empty pay. Enter a Pay Description, for example, FBT 16/17. Choose New Line Type and select E = Employer Contribution/Super and then choose the Contribution Code for Reportable Fringe Benefits (Non-exempt) Enter the net amount (i.e. the non-grossed up amount) of reportable fringe benefits (Non- exempt) and Accept (F9) Choose New Line Type and select E = Employer Contribution/Super and then choose the Contribution Code for Reportable Fringe Benefits (exempt) Enter the net amount (i.e. the non-grossed up amount) of reportable fringe benefits (exempt). Check the pays and ensure that the pay period ending and date paid dates are set to 31/03/ Run any pre-process reports, backup your payroll data and update pays. 29 May 2017 Page 14 of 40

15 Check that the FBT has been entered correctly Choose Masterfiles Payroll Employee Details Enquire. Enter the employee code, select Summary (F7) then Itemise (F6) and select Employer Contributions. The non grossed up FBT amount is displayed for non exempt and exempt Fringe Benefits Choose Period End Payroll Payment Summaries PAYG Tax Reconciliation Report to print the PAYG Tax Reconciliation Report. The net FBT amount and the grossed up value is displayed. (Note: the non-exempt and exempt amounts are added together) NOTE: When the payment summaries are printed, the first payment summary will show the grossed up value of non-exempt FBT amounts as well as all income and tax withheld. The second payment summary will show the grossed up value of exempt FBT amounts only. Reversing FBT transactions Choose Transactions Payroll Adjustments Create or Modify. Enter the employee code and press Enter. In the Function field choose Find (F2) and select O = Add new pay start with Other pay. Press Enter. In the Adjustment Pay Number field, choose Find (F2) and select the FBT pay you wish to reverse. Press Enter and type a description in the Pay Description field. Select Reverse (F8) and select Yes to the confirmation message, Ok to reverse pay? Choose Accept (F9). The line total should be a negative amount. Check the pays and ensure the pay period ending and date paid date is the same as the pay you are reversing. Run any pre-process reports, backup your payroll data and update files. Choose Transactions Payroll Adjustments Create or Modify and re-enter the FBT transaction. REF: SF May 2017 Page 15 of 40

16 Creating a copy of your payroll data Creating a copy of your data (Archive and Restore method) (see page 16) Creating a copy of your data (Copy Data Files method) (see page 17) Creating a copy of your data (Archive and Restore method) To create a copy of your data using the Archive and Restore method: Access your current payroll company Select File Archive Current Company. This begins the backup process you can see the names of the files scroll by as they are archived. When finished, the message displayed at the bottom of the Archive screen. Create a new company for last year's data: If using Attaché version 17 or earlier: Data Archived successfully is Select File Set Up and Delete Companies and enter a new company name (for example, Payroll Enter a new data path (a path that does not already exist) in the \ATTACHE\PAY1617 ). At Allow creation of new directory?, choose Yes. Choose Accept (F9). If using Attaché BI: Location field (for example, C: Select File Set Up and Delete Companies and enter a new company name (for example, Payroll ). The Database name and Data Path are created automatically. Choose Accept ( F9). 4. Sign on to the new company. 5. Select File and open the new payroll company. 6. Select Restore Company from Archive. 7. When Archive opens choose File Open Location. 8. Browse to locate the Archive created in step 2 above and select it to restore. Note: If the Data files already exist message is displayed, choose Yes. You now have a copy of your 2016/17 Payroll data. Check that the data has restored correctly (enquire or run reports). 29 May 2017 Page 16 of 40

17 Creating a copy of your data (Copy Data Files method) To create a copy of your data using the Copy Data Files method: Create a new path name for your payroll data. Access your current live-payroll data. Choose Tools Company System System Status and write down your current data path (for example, C:\Attache\Payroll). You will need this information later. 4. Create a new company for last year's data: If you using Attaché version 17 or earlier: Select File Set Up and Delete Companies and enter a new company name (for example, Payroll ). Enter a new data path (a path that does not already exist) in the \Attache\PAY1617 ). At Allow creation of new directory? choose Yes. Choose Accept ( F9). If using Attaché BI: Location field (for example, C: Select File Set Up and Delete Companies and enter a new company name (for example, Payroll ). The Database name and Data Path are created automatically. Choose Accept ( F9). 5. Sign on and select the copy-payroll-company. In our example this is Payroll Copy payroll files to the new company: Choose Tools Company System Copy Data Files. If using Attaché version 17 or earlier, in the From Path field enter the path where your original live-payroll-company is kept, which you wrote down in step 3 above. If using Attaché BI, select your live-payroll-company from the list of companies. Set the following options to Yes. System files (copies the system file, including all Payroll Options) Data files (copies your Payroll data files) Fixed Assets (copies your fixed assets data, if you use Fixed Assets) Masterfile image files (copies any masterfile images in the images folder) Menu Access file (copies each user's menu access setups) User Option files (copies each user's saved report options, screen layouts and shortcuts) Press Page Down ( PgDn) and set Copy Payroll layouts to Yes. Set all other options to No. The system copies all your current payroll files, options and details into the new copy-payroll-company. 29 May 2017 Page 17 of 40

18 Payroll EOY Reconciliation It is recommended that you reconcile your payroll throughout the year, at least quarterly. Payroll EOY Reconciliation Worksheet (see page 18) Print PAYG Tax Reconciliation Report (see page 20) Print Payment Summary Details Report. (see page 23) Print Pay Summary Report. (see page 24) REF: SF 3096 Payroll EOY Reconciliation Worksheet PAYG Tax Reconciliation Report Choose Period End Payroll Payment Summaries PAYG Tax Reconciliation Rpt. The amounts on the report are calculated from the last time EOY was processed on your payroll data. Payment Summary Details Report Choose Period End Payroll Payment Summaries Payment Summary Details Report. The amounts on the report are calculated from pays dated 01/07/ /06/2017 Payment Summary Details report Common Totals PAYG Tax Reconciliation report $ Total Gross $ $ Total Normal Tax $ $ Total Allowances $ $ Total RESC $ $ Total Reportable Fringe Benefits $ $ Total CDEP Payments $ $ Lump Sum A $ $ Lump Sum B $ $ Lump Sum D $ 29 May 2017 Page 18 of 40

19 $ Lump Sum E $ $ ETP Tax Free Component $ $ ETP Taxable Component $ $ ETP Tax $ $ Total Workplace Giving $ Payment Summary Report The amounts on the report should also balance to the Pay Summary Details Report and the PAYG Tax Reconciliation Report. Choose Period End Payroll Payment Summaries Pay Summary Report. This report shows totals by employee for gross, taxable gross, other income, lump sum payments, tax, deductions, net pay, and employer contributions (Superannuation, Reportable Fringe Benefits, Non-cash Benefits). The report should be run for a date range encompassing the financial year. If you print the report in detailed format, it shows the income types that make up the total for each employee. Check the following: Gross amount = Taxable amount (if different, could be salary sacrifice or an after-tax allowance or deduction) Total Gross = the Taxable amount on the PAYG Tax Reconciliation Report. Use the following reports to find transactions that are out of balance. Pay Totals Report Reports Payroll History Pay Totals enter a date range of 01/07/ /06/2017 The figures in the Pay column will be the totals for the date range entered. The report shows totals for hours, wages/salary, allowances, leave loading, termination, gross, deductions, tax and net. It also gives a breakdown of full time, part time, casual and other employees. You can select whether you want to itemise pay components. Itemising will show details and a total in the Pay column for each income type, allowance, deduction and employer contribution, and for termination payments, tax and banking. This report may be reprinted as often as required after running Update Files. Pay Details Report Reports Payroll History Pay Details Report enter a date range of 01/07/ /06/2017 The Payroll Details History report shows the details for each pay for each employee paid in the selected period. 29 May 2017 Page 19 of 40

20 If line details is selected, the details for each component of the employee's pay is itemised. Totals and/or line details can be printed for pays and adjustments. You can select whether you want to itemise pay components. Itemising will show details and a This Pay total for each income type, allowance, deduction, employer contribution and banking. Print PAYG Tax Reconciliation Report Choose Period End Payroll Payment Summaries PAYG Tax Reconciliation Rpt. The PAYG Tax Reconciliation report shows details that will be printed (or have been printed) on payment summaries and ETP payment summaries. The report can be printed for a tax certificate category or a range of locations, employees, pay points and /or surname sorts, and can be printed in a number of different sequences. REF: SF 2748 PAYG Tax Reconciliation Report - fields Period End Payroll Payment Summaries PAYG Tax Reconciliation Rpt. Field Description Period of Employment Shows the period during which payments were made to the employee. Check that employees who have not been employed for the entire year have the correct employed from/to dates on this report. If the employee worked on a casual basis over various times for the whole year, the period should be the whole financial year. Reconcile PAYG Tax Paid Ensure that the actual amount of tax remitted to the ATO equals the total tax on the PAYG Tax Reconciliation report. Salary Sacrifice Print PAYG Tax Reconciliation Report and check that the total gross amount has been reduced by the salary sacrifice amount. 29 May 2017 Page 20 of 40

21 Field Description Check if the RESC amount equals Salary Sacrifice (to superannuation) amount. If the amount is incorrect, check the set up of the Salary Sacrifice Deduction Code. Choose Setups Payroll Deductions Maintain. Tax Status = Before Tax Tax Certificate Code = RESC (Salary Sacrifice Super) Tax Certificate Code = Include in Tax Certificate Totals (Salary Sacrifice other than super) Allowances and Deductions If the PAYG Tax Reconciliation Report and payment summaries do not show Allowances or Deductions which should be itemised: Choose Setups Payroll Allowances (or Deductions) Maintain. In the Tax Certificate Code field, select 2 = Itemise on Tax Certificate and Accept (F9). If the PAYG Tax Reconciliation Report and payment summaries show Allowances or Deductions which should not be itemised: Choose Setups Payroll Allowances (or Deductions) Maintain. In the Tax Certificate Code field, select 1 = Include in Tax Certificate Totals or 0 = Do not Show on Tax Certificate (whichever is appropriate) and then chose Accept (F9). Reprint and check the reports. Other Income (Australia) Show any amounts you paid to the employee that are exempt income and/or foreign salary and wage income. These amounts should not be included in GROSS PAYMENTS. PAYG Tax Reconciliation Report - warning messages Each type of payment summary has unique reporting requirements. If payment codes on your system are set up incorrectly, amounts may be incorrect on payment summaries. The PAYG Tax Reconciliation report may display warning messages. The table below lists the warning messages and recommends the action to take. After making the appropriate corrections, reprint the report and check any further warning messages arising from the changes you made. Make more adjustments if needed. Repeat this process until you are satisfied that all details are correct. 29 May 2017 Page 21 of 40

22 Message Meaning Recommended action "Item" is non zero and not valid for this type of payment summary A payment has been made to a person whose employee status does not allow that type of income to be printed on their payment summary. The message includes the item's Tax Certificate Code and description. Check the Tax Certificate Code field for the allowance or deduction concerned. The codes are: 0 = Do not show on Tax Certificate 1 = Include in Tax Certificate Totals 2 = Itemise on Tax Certificate 3 = Lump Sum E Payment 4 = Other Income Review whether the payment has the correct Tax Certificate Code for the payment summary, ensuring there is a field for that category of payment on the payment summary. For example, itemised allowances cannot be shown separately on Labour Hire, Voluntary Agreement or Personal Services payment summaries they must be included in the gross. If an incorrect payment has been made, an adjustment is required. If the payment is correct, create a new allowance with a Tax Certificate Code of Include in Tax Certificate Totals and process an adjustment to transfer the amount to the new code. This ensures that the payment prints in the correct field. The Total Gross will not necessarily equal the payment summary figures shown on this report for that employee, as they will not include all allowances and deductions. The type of payment summary and the Tax Certificate Code determine where the payment appears. Tax contains cents The tax amount does not conform to current requirements which specify that you must withhold whole dollars only. Payment summaries will automatically truncate any cents withheld. Employee TFN/ABN is blank No number will appear on the payment summary and the ATO Magnetic Media file will have zero-filled fields. Update the employee's tax details on the masterfile. Check employee TFN Check whether the exception code still applies. 29 May 2017 Page 22 of 40

23 Message Meaning Recommended action ATO exception codes have been used instead of a valid number. (Note: this message does not appear for other types of incorrect TFNs.) Negative Amount A negative total will appear on the payment summary and the Magnetic Media file will have zero-filled amount fields. Negative totals are invalid on payment summaries. Before you print the payment summaries, investigate the problem and take the appropriate action to correct it. Lump Sum A, B, D or ETP is not zero and not valid for this summary type Termination payments have been made for a payment summary that has no fields for these types of payments. Only Individual Non-Business employees can receive termination payments. Check whether the Tax Cert Category is correct and whether the payment made is appropriate. Make any necessary adjustment. REF: SF 11 Print Payment Summary Details Report. Choose Period End Payroll Payment Summaries Payment Summary Details Report The Payment Summary Details Report shows details that will be printed (or have been printed) on payment summaries and ETP payment summaries. The report also shows the different types of Payment Summaries that will be created or have been created for employees. E.g. Normal Payment Summaries, ETP Type R (Redundancy/Retirement /Invalidity/Comp, ETP Type S (Prior year Redundancy/Retirement, etc.) To correct ETPs refer to Checking and correcting ETPs (see page 35) 29 May 2017 Page 23 of 40

24 Related resources Learn more about payment summary details report. Recorded for Attaché Payroll, this video also applies to Attaché BI. (36 mins video. ( Print Pay Summary Report. Choose Period End Payroll Payment Summaries Pay Summary Report This report shows totals by employee for gross, taxable gross, other income, lump sum payments, tax, deductions, net pay, and employer contributions (Superannuation and Reportable Fringe Benefits). The report should be run for a date range encompassing the financial year. If you print the report in detailed format, it shows the income types that make up the total for each employee. Check the following: Gross amount = Taxable amount (if different, could be salary sacrifice or an After tax allowance or deduction) Total Gross = the Taxable amount on the PAYG Tax Reconciliation Report. 29 May 2017 Page 24 of 40

25 Validate payment summary/magnetic Media data for the ATO The validation program checks the employee masterfile for missing or invalid tax file numbers and incorrect address/postcode details. Choose Period End Payroll Payment Summaries Employer Details/Validation. If any errors or warnings are found, a report showing the details will display. You need to correct the errors (indicated by ** on the report) before you submit information to the ATO. You do not necessarily need to correct the warnings. This validation must be run prior to selecting to create payment summaries. It is possible that the Employer and Supplier Details may differ, for example if the payroll is being processed by a payroll bureau. In this event all details will need to be completed. Where the Employer and Supplier Details are the same, set the Is the Employer the Supplier? check box to Yes and complete the employer details in the employer section. The details will automatically update the supplier details. Note the formatting of Phone and Fax Numbers must be XX XXXX XXXX. REF: SF May 2017 Page 25 of 40

26 Create payment summaries To create payment summaries: Archive your data. Label this backup "Prior to creating payment summaries 2016/2017". Keep it in a safe place as a permanent record. Choose Period End Payroll Payment Summaries Create Payment Summaries. Create payment summaries for the Starting Tax Year 2016, choosing to Process all Employees. Once the payment summaries have been added to the payment summary file, you can run your end of year and start processing for the new year. Note: If you have created payment summaries during the year, they do not get re-created. The Payment Summary Details Report will show payment summaries that have already been created throughout the year. REF: SF 2751 Tip: If you can't create payment summaries prior to processing a July pay, create a copy of your payroll data as described in Creating a Copy of Your Data (see page 16). You must run EOY on the current Payroll company where you will enter new pays for the 2016/17 financial year. Use the copy Payroll compan y (Payroll ) to create paym ent summaries and magnetic media file. 29 May 2017 Page 26 of 40

27 Print payment summaries. Choose Period End Payroll Payment Summaries Print Payment Summaries. Select to print payment summaries for all employees and in the Individual Non-Business Form Layout field, choose the default print layout. A payment summary will not be printed for any employee who has already received one. Once payment summaries are printed and masterfiles updated, you may reprint copies as often as necessary. Check that all payment summaries have finished printing and are correct. If all payment summaries printed correctly: Set All printed correctly to Yes. Attaché Payroll updates all employee files to indicate that it has printed a payment summary for them. If only some payment summaries printed correctly: Set All printed correctly to No and enter the code of the last employee whose payment summary printed correctly. (Attaché Payroll only updates employee files with correctly printed payment summaries.) Select to print all payment summaries again (Attaché Payroll prints payment summaries only for those employees whose files were not updated.) If no payment summaries printed correctly: 29 May 2017 Page 27 of 40

28 Set All printed correctly to No, then choose None ( F6). (No employee files will be updated.) Select to print all payment summaries again. 29 May 2017 Page 28 of 40

29 Print Employment Termination Payment (ETP) Summaries "There are ETP Summaries to be printed" message An ETP is an Employment Termination Payment. Details of these are entered on Termination Pay in Payroll Transaction Entry. When payment summaries are printed, the above message will be displayed if there are ETP Summaries that have not been printed for any employees who have received an ETP. Any ranges entered when printing Payment Summaries are ignored the whole payroll is checked. To print employees' ETP Summaries choose Reports Payroll Payment Summaries ETP Payment Summaries. Similar to payment summaries, Attaché Payroll displays a message asking you to confirm that the ETP Summaries printed correctly. "ETP Summary has not been printed" message When creating the Magnetic Media file, this message will be displayed if there are (still) ETP Summaries that have not been printed for any employees who have received an ETP. The Transfer Listing produced will highlight those employees who need to have ETP Summaries printed. You must print ETP Summaries for these employees via ETP Payment Summaries otherwise the details transferred to the ATO will not be correct. 29 May 2017 Page 29 of 40

30 Create Magnetic Media File You must create your magnetic media file for the ATO. In most circumstances this is only at the end of the financial year. However, if an organisation has special requirements (such as seasonal workers), separate files may be sent during the year. Choose Period End Payment Summaries Magnetic Media File Create During the year you may have distributed payment summaries or ETP payment summaries on demand, and now during end-of-year processing you will have printed them for the remaining employees. The information required for the Magnetic Media file is stored in Attaché Payroll when payment summaries are created. The Magnetic Media File Create program transfers this information to a file in the form required by the ATO. Each transfer file (Magnetic Media file) that is created includes only payment summaries which are not flagged as having already been transferred to the ATO. While the file creation is in progress the Magnetic Media Transfer File Listing will print. This listing shows full details of the information transferred to the file for the ATO and should be checked thoroughly before selecting Yes to OK to complete Transfer? Itemised Deductions are not required in the Magnetic Media Information Transfer File, therefore you will not find a reference to them on the Magnetic Media Transfer File Listing. 29 May 2017 Page 30 of 40

31 General Ensure the Supplier (Employer) Details on the Magnetic Media File Create screen are correct. (By ATO definition, the Supplier is the provider of the data.) This is most important if you are reporting on behalf of multiple PAYG Employers within the one data directory, as details are held on file and used to sort the Magnetic Media information per employee under the applicable PAYG Employer. The last details printed and accepted are transferred to file to be sent to the ATO. Once you have selected Yes to Ok to complete Transfer? the file that has been created must be sent to the ATO. The file created is named EMPDUPE. Submitting details to the ATO Tax information must be submitted to the ATO by 14 August each year. Using the ATO Online Services you can securely and conveniently lodge both of the following: Payment Summary annual report Withholding Where ABN Not Quoted annual report. 29 May 2017 Page 31 of 40

32 Before processing July pays Process end of year in Payroll You must process end of year on your live-payroll-company before processing any pays for the 2016/17 financial year. Choose Period End Payroll End of Period Payroll. Set both End of Period and End of Year to Yes. Download and import Tax Scales for 2017/18 Choose Setups Payroll Tax Scales Download Tax Scales from Web. When asked Do you wish to download new tax scales from the Attaché website? choose Yes. The software automatically selects the tax scales that match the country selected in the Country field in Payroll Options and downloads the file to your program folder. An information message is displayed when the download is complete: New tax scales have been successfully downloaded. Please run Import Tax Scales in each company to activate the new rates. For each payroll company where these tax scales apply, follow the steps below to activate the tax scales: Choose Setups Payroll Options Payroll Options and Page Down to the second screen. Attaché recognises that new tax scales are available and displays a message asking if you want to import them. Choose Yes to import the new scales into the current company. To check that the tax scales have updated properly, Page Down to the third screen of Payroll Options and check that the Effective for Payments Date field is set to the date that the tax scales come into effect. (Do not change this date for any reason.) Maximum Superannuation Contribution Base Will increase to $52,760 per quarter from 1 July To update your payroll go to Setups Payroll Employer Contributions Maintain and enter $52,760 in the Quarterly Value Maximum field. 29 May 2017 Page 32 of 40

33 Correcting payment summaries Incorrect payment summaries (before Mag Media file) If payment summaries are incorrect (and you have not yet created the Mag Media to send to the ATO), you can delete them, make your corrections, re-create and print again. If you have already created Mag Media, see Incorrect Payment Summaries or Mag Media File (not yet submitted to ATO) below. Your Attaché user name needs to have a password level 1 to be able to delete payment summaries. To check your password level choose File Maintain Users Maintain and then select your user name and check your password level. To delete payment summaries before creating Mag Media: Choose current year. Period End Payroll Payment Summaries Delete Payment Summaries. Select If you wish to delete payment summaries for all employees, choose Delete (F9). To delete payments summaries for one employee, page down and enter the Employee Code in the employee range fields and then choose Delete (F9). You can now make your corrections and then create and print your payment summaries. Incorrect payment summaries or Mag Media file (not yet submitted to ATO) If the payment summaries or Mag Media are incorrect, you can delete the payments summaries and undo the Mag Media batch, make your corrections, re-create and print again. (If you have not yet created the Mag Media file, see Incorrect Payment Summaries (before Mag Media) above. Your Attaché user name needs to have a password level of To check your password level choose File Maintain Users Maintain and then select your user name and check your password level. To undo the Mag Media batch: Choose Period End Payroll Payment Summaries Delete Payment Summaries. Select current year. Set the Undo check box to Yes. Select the Batch Number. Select Undo Mag Media Batch to undo the Mag Media File. Choose Delete ( F9). To delete payment summaries: Select current year. Set the Undo check box to No. Choose Delete ( F9). 29 May 2017 Page 33 of 40

34 You can now make your corrections and then create, print your payment summaries and create the Mag Media file. Incorrect payment summaries (issued to employees) and incorrect Mag Media file (submitted to ATO) If you have issued a payment summary which is incorrect, you can create an amended payment summary which is then marked for inclusion in the Magnetic Media (EMPDUPE) file. To create and print an amended payment summary: Choose Setups Payroll Options Payroll Options and set the Amend Payment Summary check box to YES and enter a password level in the Password level field (to create an amended payment summary an operator must then have the required password level or higher). Choose Transactions Payroll Time Sheets or Adjustments Create or Modify. Enter the amended details. If the Payment Summary status in employee masterfile of the selected employee displays a number next to Created or Printed, a message is displayed: A Payment Summary has been created for this employee for this financial year, Do you wish to create an Amended Payment Summary? Select Yes Choose Period End Payment Summaries Create Payment Summaries and set the Create Amended Payment Summary check box to Yes. Make any other selections required and then select Process (F9). You will be asked to confirm creation for each employee. Choose Period End Payment Summaries Print Payment Summaries. Select the required ranges and selections, ensuring you set the the Report Options area to Yes. Print Amended Payment Summary Only check box in The amended payment summary details will be included in the Magnetic Media file. Note: Payment summaries and amended payment summaries will both be included in the same file. ATO could not read magnetic media file (All payment summaries correct, no changes required). If the ATO could not read the magnetic media file or the mag media file was not received by the ATO you can retrieve the batch and recreate the magnetic media file. Choose Period End Payroll Payment Summaries Magnetic Media File Create Set the Retrieve Batch check box to YES and select the batch number. REF: SF 3528 SF 2863 Related resources Learn more about undo magnetic media and deleting payment summaries. Recorded for Attaché Accounts, this video also applies to Attaché BI. (4.24 mins total, a series of two videos ( youtube.com/playlist?list=plwlkwqldpoq0qm8dfvr30crv08hiawlei).) 29 May 2017 Page 34 of 40

35 Checking and correcting ETPs Checking ETPs already entered in Attaché Payroll If you have entered ETPs this financial year, you should check that the ETP amounts and the ETP payment codes are correct. To check your ETP information: 4. Choose Period End Payroll Payment Summaries Payment Summary Details Report. Confirm that the Starting Tax Year field is set to 2016 Choose Print (F9) to create the report. Review the report and check that the ETP amount and the ETP Code are correct. Note: An employee can have multiple ETPs. Correcting an ETP If an ETP amount or ETP payment code is incorrect you must create the ETP payment summary and reverse the ETP using an adjustment pay. You can then re-enter the ETP with the correct details. To correct an ETP: Create ETP payment summary 4. Choose Period End Payroll Payment Summaries Create Payment Summaries. Select the Create ETP Payment Summary Only check box. Page Down and enter the Employee Code range. Choose Process (F9). Reverse the ETP pay transaction Choose Setups Payroll Options Payroll Options. Select the Amend Payment Summary check box and set an appropriate password level. Choose Accept (F9) to save your changes. Choose Transactions Process Payroll Adjustments Create or Modify. Enter the relevant Employee Code. The message displayed. Choose Yes. Terminated employee Continue? is The message Do you wish to amend an existing payment summary? is displayed. Choose Yes. Select the relevant ETP payment summary from the list and choose Accept (F9). Select Function and choose Add new pay - start with Other pay. 8. Choose Find (F2) in the Adjustment Pay Number field and select the relevant pay. Choose Accept (F9). 29 May 2017 Page 35 of 40