Attaché Help Centre. Payroll End-of-Year 2017/18 Processing (Australia)

Transcription

1 Attaché Help Centre Payroll End-of-Year 2017/18 Processing (Australia) Export date: 12 June 2018

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

3 Table of Contents Table of Contents...3 Which version for printing payment summaries and creating Mag Media file?...6 Reportable fringe benefits information...7 Reporting amounts on payment summaries...7 Reporting fringe benefits on payment summaries...8 Processing reportable fringe benefits (non-exempt)...9 Processing reportable fringe benefits (non-exempt and exempt) Creating a copy of your payroll data...14 Payroll EOY Reconciliation...16 PAYG Tax Reconciliation Report Payment Summary Details Report Pay Summary Report Pay Totals Report Pay Details Report Payroll EOY Reconciliation Worksheet Print PAYG Tax Reconciliation Report Print Payment Summary Details Report Print Pay Summary Reports Validate payment summary/magnetic Media data for the ATO...25 Create payment summaries...26 Print payment summaries for employees...27 Print Employment Termination Payment (ETP) Summaries...29 Create Magnetic Media File...30 General June 2018 Page 3 of 43

4 Submitting details to the ATO Before processing July pays...32 Process end of year in Payroll Download and import Tax Scales for 2018/ Correcting payment summaries...34 Incorrect payment summaries (before Mag Media file) 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...37 Checking ETPs already entered in Attaché Payroll Correcting an ETP Deleting employees...39 Information messages and recommended action Payroll End-of-Year Checklist...41 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) Australian payroll information for the 2018/19 financial year June 2018 Page 4 of 43

5 Payroll End-of-Year 2017/18 Processing (Australia) This area contains information and checklists for payroll end-of-year 2017/18 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-ofyear processing. We recommend you discuss your specific end-of-year procedures with your Attaché consultant. 12 June 2018 Page 5 of 43

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 2016/17 year end. (To check your current version, in Attaché choose Help About Attaché.) Payroll EOY Processing: (minimum) Attaché Accounts and Payroll version 1.17 (March 2016), however, you will need to issue paper payment summaries Attaché BI version (June 2017) includes the ATO's required "version 12" payment summary layout*. If you are using an earlier version, you will need to issue paper payment summaries. (recommended) Attaché BI version (November 2017) or Attaché 18.1 (May 2018) Payroll starting the new financial year To prepare for STP reporting, Attaché BI (November 2017) or Attaché June 2018 Page 6 of 43

7 Reportable fringe benefits information Reporting amounts on payment summaries Employers subject to FBT are required to record the grossed-up taxable value of reportable fringe benefits nonexempt 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 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 47%, the value of reportable fringe benefits is calculated as follows: $3, divided by----- (1 0.47) = $3, divided by = $5,660 (in whole dollars) 12 June 2018 Page 7 of 43

8 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 2017 to 31 March 2018 on the employee's payment summary for the income year 1 July 2017 to 30 June REF: SF 2746, 2779, 2780, 95 Reporting fringe benefits on payment summaries Note: these changes to reporting FBT on payment summaries were first introduced for EOY 2016/17. 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. The ATO's updated payment summary layout (version 12) that includes the FBT-exempt indicator as well as other related changes is included in Attaché BI version 3.7 (June 2017) and later. Further information Read about Non-profit organisations and FBT 1 and Additional information Is the employer exempt from Fringe Benefits Tax? 2 at the ATO website Fringe_benefits_tax_exempt_type_field_instructions.pdf 12 June 2018 Page 8 of 43

9 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 3 at the ATO website. Check your payroll setups The FBT rate and threshold amount for the FBT year ending March 2018 are 47% and $2,000 respectively. 1. To check that your setups are correct, choose Setups Payroll Options Payroll Options. 2. Select the Tax Details tab to check the FBT rate and threshold amount. Check your Reportable Fringe Benefit Codes 1. Choose Setups Payroll Employer Contributions Maintain to check your settings. 2. Make sure you have set up an Employer Contribution Code that has a Contribution Category of Reportable Fringe Benefit/Non-cash Benefit (Non-exempt). Processing fringe benefits 1. Choose Transactions Payroll Adjustments Create or Modify. 2. Enter an adjustment pay starting with an empty pay. 3. Enter a Pay Description, for example, FBT 17/18 4. Choose New Line Type and select E = Employer Contribution/Super and then choose the Contribution Code for Reportable Fringe Benefits (non-exempt). 5. Enter the net amount (that is, the non-grossed up amount) of reportable fringe benefits (non-exempt). 6. 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. Check that the FBT has been entered correctly 1. Choose Masterfiles Payroll Employee Details Enquire June 2018 Page 9 of 43

10 2. 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. 3. 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 1. Choose Transactions Payroll Adjustments Create or Modify. 2. Enter the Employee Code and press Enter. 3. In the Function field choose Find (F2) and select O = Add new pay start with Other pay. Press Enter. 4. 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. 5. Select Reverse (F8) and select Yes to the confirmation message, Ok to reverse pay? 6. Choose Accept (F9). The line total should be a negative amount. 7. Check the pays and ensure the pay period ending and date paid date is the same as the pay you are reversing. 8. Run any pre-process reports, backup your payroll data and update files. 9. Choose Transactions Payroll Adjustments Create or Modify and re-enter the FBT transaction. REF: SF June 2018 Page 10 of 43

11 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 4 at the ATO website. Check your payroll setups The FBT rate and Threshold Amount for the FBT Year ending March 2018 are 47% and $2,000 respectively. 1. To check that your setups are correct, choose Setups Payroll Options Payroll Options. 2. Select the Tax Details tab to check the FBT rate and Threshold Amount. This task requires Attaché BI version 3.7 (June 2017) or later. This version includes the ATO's updated payment summary layout (version 12) that includes the FBT-exempt indicator as well as other changes related to processing exempt FBT. Check your current version (in Attaché, choose Help About Attaché ) If you are not using Attaché BI Payroll version 3.7 or later, contact your Attaché consultant about reporting requirements. 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 Contribution Category of Reportable Fringe Benefit/Non-cash Benefit (Non-exempt). Make sure you have set up an Employer Contribution Code that has a Contribution Category of Reportable Fringe Benefit/Non-cash Benefit (Exempt). 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 17/ June 2018 Page 11 of 43

12 Choose New Line Type and select E = Employer Contribution/Super and then choose the Contribution Code for Reportable Fringe Benefits (Nonexempt). Enter the net amount (that is, 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 (that is, 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 31/03/2018. Run any pre-process reports, back up your payroll data and process 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 and exempt Fringe Benefits. Choose Period End Payroll Payment Summaries PAYG Tax Reconciliation Report to print the PAYG Tax Reconciliation Report. The total of the net FBT amounts and the grossed-up value of the nonexempt and exempt FBT amounts are displayed. 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. 12 June 2018 Page 12 of 43

13 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, back up your payroll data and process pays. Choose Transactions Payroll Adjustments Create or Modify and re-enter the FBT transaction. REF: SF June 2018 Page 13 of 43

14 Creating a copy of your payroll data To create a copy of your data using the Archive and Restore method: If using Attaché BI or later: 1. Access your current payroll company. 2. 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 Data archived successfully is displayed at the bottom of the Archive screen. 3. Create a new company for last year's data. 4. Select File Set Up and Delete Companies and enter a new company name (for example, Payroll ) 5. Are you sure you want to add a new company named XXX?, choose Yes 6. The Database name and Data Path are created automatically. 7. Choose Accept (F9). 8. Sign on to the new company. 9. Select File Open Company, open the new payroll company (created in step 4 above) and then choose File Restore Company from Archive. 10. Select the archive you created in step 2 above. 11. Choose File Restore. Tip: If you don't have time to create payment summaries prior to processing a July pay, create a copy of your payroll data and use this copy Payroll company to process payment summaries and magnetic media file. This company is the complete record of your 2017/18 financial year. You must run EOY on the current Payroll company where you will enter new pays for the 2018/19 financial year. You now have a copy of your 2017/18 payroll data. Check that the data has restored correctly (enquire or run reports). If using Attaché version 1.17 or earlier: 1. Access your current payroll company. 2. 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 Data archived successfully is displayed at the bottom of the Archive screen. 3. Create a new company for last year's data. 4. Select File Set Up and Delete Companies and enter a new company name (for example, Payroll ). 5. Enter a new data path (a path that does not already exist) in the Location field (for example, C:\Attache\PAY1718). 6. At Allow creation of new directory?, choose Yes. 7. Choose Accept (F9). 12 June 2018 Page 14 of 43

15 8. Sign on to the new company. 9. Select File Open Company, open the new payroll company (created in step 4 above) and then choose File Restore Company from Archive. 10. Select the archive you created in step 2 above. 11. Enter the location where you wish to restore the data to. In our example this is C:\Attache\PAY Choose File Restore. Note: If the Data files already exist message is displayed, choose Yes. You now have a copy of your 2017/18 payroll data. Check that the data has restored correctly (enquire or run reports). 12 June 2018 Page 15 of 43

16 Payroll EOY Reconciliation It is recommended that you reconcile your payroll throughout the year, at least quarterly. Use the Payroll EOY Reconciliation Worksheet (see page 17), and the information from the PAYG Tax Reconciliation Report and the Payment Summary Details Report, you can keep your payroll in balance. 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. Read more (see page 18). Payment Summary Details Report Choose Period End Payroll Payment Summaries Payment Summary Details Report. The amounts on the report are calculated from pays with date paid of 01/07/ /06/2018. Read more (see page 22). Pay Summary Report Choose Period End Payroll Payment Summaries Pay Summary Report enter a date range using Date Paid of 01/07/ /06/2018. The amounts on the report should also balance to the Pay Summary Details Report and the PAYG Tax Reconciliation Report. Read more (see page 23). Use the following reports to find transactions that are out of balance. It is important that the data is correct, and any discrepancies are understood and corrected where required. Pay Totals Report Reports Payroll History Pay Totals enter a date range using Date Paid of 01/07/ /06/2018. 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. 12 June 2018 Page 16 of 43

17 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 using Date Paid of 01/07/ /06/2018. The Payroll Details History report shows the details for each pay for each employee paid in the selected period. 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. REF: SF 3096 Payroll EOY Reconciliation Worksheet Use the Payroll EOY Reconciliation Worksheet, and the information from the PAYG Tax Reconciliation Report (see page 18) and the Payment Summary Details Report (see page 22), you can keep your payroll in balance. 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 $ 12 June 2018 Page 17 of 43

18 $ Lump Sum A $ $ Lump Sum B $ $ Lump Sum D $ $ Lump Sum E $ $ ETP Tax Free Component $ $ ETP Taxable Component $ $ ETP Tax $ $ Total Workplace Giving $ Print PAYG Tax Reconciliation Report Choose Period End Payroll Payment Summaries PAYG Tax Reconciliation Rpt. The PAYG Tax Reconciliation report shows details that are calculated from the last time EOY was processed on your payroll data, irrespective of the financial year pay dates. 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. 12 June 2018 Page 18 of 43

19 REF: SF 2748 PAYG Tax Reconciliation Report - fields Period End Payroll Payment Summaries PAYG Tax Reconciliation Rpt. Field Period of Employment Description 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. 12 June 2018 Page 19 of 43

20 Field Description Salary Sacrifice Print PAYG Tax Reconciliation Report and check that the total gross amount has been reduced by the salary sacrifice amount. 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: 1. Choose Setups Payroll Allowances (or Deductions) Maintain. 2. 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: 1. 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). 2. 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. 12 June 2018 Page 20 of 43

21 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 zerofilled fields. Update the employee's tax details on the masterfile. 12 June 2018 Page 21 of 43

22 Message Meaning Recommended action Check employee TFN ATO exception codes have been used instead of a valid number. (Note: this message does not appear for other types of incorrect TFNs.) Check whether the exception code still applies. Negative Amount A negative total will appear on the payment summary and the Magnetic Media file will have zerofilled 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 Related resources 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 37) Learn more about Payment Summary Details Report. Recorded for Attaché 12 June 2018 Page 22 of 43

23 Payroll, this video also applies to Attaché BI. (3.36 mins video. 5 ) Print Pay Summary Reports 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 (using Date Paid instead of Pay Period Ending Date). 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 June 2018 Page 23 of 43

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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 June 2018 Page 25 of 43

26 Create payment summaries To create payment summaries: 1. Archive your data. Label this backup "Prior to creating payment summaries 2017/2018". Keep it in a safe place as a permanent record. 2. Choose Period End Payroll Payment Summaries Create Payment Summaries. 3. Create payment summaries for the Starting Tax Year 2017, 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. Tip: If you don't have time to 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 14). You must run EOY on the current Payroll company where you will enter new pays for the 2018/19 financial year. You can use the newly-created copy Payroll company to process payment summaries and magnetic media file. REF: SF June 2018 Page 26 of 43

27 Print payment summaries for employees 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.) 12 June 2018 Page 27 of 43

28 If no payment summaries printed correctly: Set All printed correctly to No, then choose None (F6). (No employee files will be updated.) Select to print all payment summaries again. 12 June 2018 Page 28 of 43

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. 12 June 2018 Page 29 of 43

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? 12 June 2018 Page 30 of 43

31 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. 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. 12 June 2018 Page 31 of 43

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 2018/19 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 2018/19 1. Choose Setups Payroll Tax Scales Download Tax Scales from Web. 2. 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: 1. Choose Setups Payroll Options Payroll Options and Page Down to the second screen. 2. 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. 3. 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 $54,030 per quarter from 1 July anchor=maximumsupercontributionbase To update your payroll go to Setups Payroll Employer Contributions Maintain and enter $54,030 in the Quarterly Value Maximum field. 12 June 2018 Page 32 of 43

33 Setting up itemised allowances for Single Touch Payroll If you are on Attaché 18 and will be using Single Touch Payroll reporting, you will need to itemise your allowances June 2018 Page 33 of 43

34 Correcting payment summaries Related resources 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, recreate 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: Learn more about how to 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 7.) Choose Period End Payroll Payment Summaries Delete Payment Summaries. Select current year. 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 June 2018 Page 34 of 43

35 Your Attaché user name needs to have a password level of 1. 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: 1. Choose Period End Payroll Payment Summaries Delete Payment Summaries. 2. Select current year. 3. Set the Undo check box to Yes. 4. Select the Batch Number. 5. Select Undo Mag Media Batch to undo the Mag Media File. 6. Choose Delete (F9). To delete payment summaries: 1. Select current year. 2. Set the Undo check box to No. 3. Choose Delete (F9). 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: 1. 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). 2. Choose Transactions Payroll Time Sheets or Adjustments Create or Modify. 3. Enter the relevant Employee Code. If the Payment Summary status in employee masterfile of the selected employee displays a number next to Created or Printed, a message is displayed: Do you wish to amend an existing Payment Summary? Select Yes. 12 June 2018 Page 35 of 43

36 4. Select the relevant payment summary or ETP payment summary from the list. 5. Enter the amended details and accept the pay. 6. Choose Transactions Process Payroll Check Payroll Check Pays to process the payroll, backup your data and update the files. 7. Choose Period End Payroll 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. 8. Choose Period End Payroll Payment Summaries Print Payment Summaries. Select the required ranges and selections, ensuring you set the Print Amended Payment Summary Only check box in the Report Options area to Yes. 9. The amended payment summary details will be included in the Magnetic Media file. Note: Amended payment summaries and other created payment summaries not already marked as transferred will be included in the 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. 1. Choose Period End Payroll Payment Summaries Magnetic Media File Create 2. Set the Retrieve Batch check box to YES and select the batch number. REF: SF 3528 SF June 2018 Page 36 of 43

37 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: 1. Choose Period End Payroll Payment Summaries Payment Summary Details Report. 2. Confirm that the Starting Tax Year field is set to Choose Print (F9) to create the report. 4. 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 1. Choose Period End Payroll Payment Summaries Create Payment Summaries. 2. Select the Create ETP Payment Summary Only check box. 3. Page Down and enter the Employee Code range. 4. Choose Process (F9). Reverse the ETP pay transaction 1. Choose Setups Payroll Options Payroll Options. Select the Amend Payment Summary check box and set an appropriate password level. 2. Choose Accept (F9) to save your changes. 3. Choose Transactions Process Payroll Adjustments Create or Modify. 4. Enter the relevant Employee Code. The message Terminated employee Continue? is displayed. Choose Yes. 5. The message Do you wish to amend an existing payment summary? is displayed. Choose Yes. 12 June 2018 Page 37 of 43

38 6. Select the relevant ETP payment summary from the list and choose Accept (F9). 7. 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). 9. Press Enter. 10. Enter a Pay Description, for example: Reversal of incorrect 2017/18 ETP. 11. Choose Reverse (F8). Select Yes to reverse the pay. 12. Choose Term Pay (F5) to check that the ETP amounts are reversed. 13. Choose Accept (F9) and Accept (F9) again then Finish (Esc) to accept the pay. 14. Choose Transactions Process Payroll Check Payroll Check Pays and set only the Adjustment Pays check box to Yes. Choose Accept (F9). 15. You can now back up your data, process the payroll and update the files. Create amended ETP payment summary 1. Choose Period End Payroll Payment Summaries Create Payment Summaries. 2. Select the Create Amended Payment Summary Only check box. 3. Page Down and enter the Employee Code range. 4. Select Process (F9) then select OK. 5. Select Yes to amend the payment summary. 6. Print the Payment Summary Details report by choosing Period End Payroll Payment Summaries Payment Summary Details Report. You should now see the message the payments summary has been amended to zero. Re-enter the ETP pay correctly 1. Choose Transactions Process Payroll Adjustments Create or Modify. 2. Enter the relevant Employee Code. 3. Select Yes to the message Terminated employee Continue? 4. Select No to the message Do you wish to amend an existing payment summary? 5. Re-enter the ETP pay correctly. 6. Choose Transactions Process Payroll Check Payroll Check Pays and set only the Adjustment Pays check box to Yes. Choose Accept (F9). 7. You can now back up your data, process the payroll and update the files. 8. Print the Payment Summary Details report (Period End Payroll Payment Summaries Payment Summary Details Report). If the information in the report is correct you are now ready to create both normal and ETP payment summaries. REF: SF June 2018 Page 38 of 43

39 Deleting employees To delete terminated employees, you must have run End of Year on your Payroll data. To do so, choose Period End Payroll End of Period Payroll and set both the End of Period and End of Year check boxes to Yes. Note: Make sure you have taken a copy of your payroll data before you start deleting terminated employees (current Payroll company). You will use the copy payroll company (payroll company) to reprint reports and payment summaries for terminated employees. Tip: If you have a large payroll with many transactions, deleting history transactions and terminated employees will speed up processing and reporting times. 1. Delete history transactions Timesheets and Adjustments. a. Choose Transactions Payroll Time Sheets Delete History Transactions and enter the date range and employee code range. b. Choose Transactions Payroll Adjustments Delete History Transactions and enter the date range and employee code range. 2. Delete Super Payment Details. a. Choose Period End Payroll Superannuation Delete Super Payment Details. b. Set the Terminated check box to Yes and Page Down to enter any relevant ranges. 3. Delete employee. a. Choose Masterfiles Payroll Employee Details Delete. Enter employee code range. Information messages and recommended action "Fringe Benefit information still exists" You cannot delete the employee because FBT amounts exist for the next financial year. "Leave Liability Not Zero" Print the Leave Liability Journal (Reports Payroll Leave Leave Liability Journals). In the Employee Status selection area, set only the Terminated check box to Yes. Print the report and choose Yes to create the GL Journals. 12 June 2018 Page 39 of 43

40 Note: If the message still appears when trying to delete terminated employees, check the employee's masterfile Leave tables. If they are set to NIL, you will need to add the relevant leave tables to reverse the leave liability. The Employee Other Payments File contains unprinted details for Employee Code XXXXXXX Delete Super Payment Details (Period End Payroll Superannuation Delete Super Payment Details). Set the Terminated check box to Yes and Page Down to enter any relevant ranges. Cannot delete Employee Masterfile has Payroll G/L Interface Print the GL Postings (Reports Payroll Other Reports General Ledger Postings). Select Payroll in the Modules selection area. Check the transactions on this report. If the transactions are to be posted to the general ledger, go to your General Ledger and post now. If the transactions are not to be posted to the general ledger, go to Reports Payroll Other Reports Delete GL Postings File. Choose Payroll from the Modules selection area and enter the transactions date range. REF: SF 10 SF 2747, 2839, 3510, 3509, June 2018 Page 40 of 43

41 Payroll End-of-Year Checklist If you have employees under the Working Holiday Maker program ("backpackers tax"), please contact your Attaché consultant about payment summary requirements. Tip: In which company do I process EOY? Once you have created a copy of your Payroll data, that copy is the complete record of your 2017/18 financial year. Do not run EOY on this company. You must run EOY on the same payroll company (data set) where you will enter transactions for the 2018/19 financial year. Please note that this end-of-year checklist is of a generic nature. Process Last Pay for Year Process the last pay for the year and enter any necessary adjustments. Enter your FBT figures. Print your usual end-of-period reports. Do not run an end of period or end of year. Copy Current Payroll Data to another path. If you need to process a pay for the new financial year prior to completing end-of-year processing and reporting, copy the current payroll data to another path and use this copy when you are ready to finalise and print reports and payment summaries. Process the end of year in the original company. Reconcile Make sure that you have an archive of your payroll data. Ensure the start of tax year is set to 1/7/2017 in Payroll Options. Print the Pay Summary report and reconcile to PAYG Tax Reconciliation Report and Payment Summary Details Report. Resolve any warning messages on the PAYG Tax Reconciliation Report. Repeat this process until no warning messages are displayed and you are satisfied that all details are correct. Check that Total Tax is equal to the amount of tax which has been remitted to the ATO. Check that the amounts relating to employee income on the PAYG Tax Reconciliation Report are accurate. Complete Your Tax Reporting Validate employer and payment summary details, including postcodes. Create payment summaries. Print payment summaries. Create Magnetic Media file. 12 June 2018 Page 41 of 43

42 Submit Magnetic Media information to the ATO. Process End of Year in Live-Payroll-Company Choose Period End Payroll End of Period Payroll. Set End of Period and End of Year to Yes. Archive End-of-Year Data (post processing) Archive your data. Take note of the date and time of the archive. Keep this archive as a permanent record. Perform Housekeeping (can be done at any time throughout the year) Delete history transactions (optional). Consolidate leave history transactions (optional). Delete terminated employees (optional). 12 June 2018 Page 42 of 43