Get ready for EOFY 19/20 with KeyPay!
Last updated: 9 June 2020
Don’t let the end of the financial year scare you! KeyPay is here to provide you with all the tools you’ll need to make wrapping up the Financial Year 2019/2020 as smooth as possible. This blog will help you with understanding key End of Financial Year (EOFY) tasks that need to be completed, and equip you with knowing how to implement them effectively within KeyPay.
Our EOFY resources at a glance:
Our webinars are a useful way of gaining knowledge on how to access and utilise tools within KeyPay that will help you in the EOFY process. There are two topics offered:
*Note that all webinars will be uploaded to YouTube
In each of our five guides below, our team walks you through the steps necessary to process crucial EOFY tasks in KeyPay.
Last updated: 9 June 2020
By following our top housekeeping tips for End of Financial Year in KeyPay, you can avoid frustrating issues
- Check employees’ Tax File Numbers: Ensure your employee's Tax File Numbers are valid. If an employee's Tax File Number has been entered as ‘111111111’, you should make sure you contact the employee for the correct data.
- Do you have approved working holiday makers in your business? Check if your employee’s working holiday maker flag is correct: This can be done on the employee’s tax file declaration page.
- Joined KeyPay mid-Financial Year? Importing your YTD balances to KeyPay means you only need to undertake one finalisation event or payment summary lodgement per employee. If reporting via STP, refer to our transitional options available to you.
- Check if employees have Fringe Benefits Tax that needs to be reported: Reportable FBT must be entered separately – RFBA's cannot be entered via pay runs.
- Make sure reportable employer super contributions have been processed in the pay run.
- Ensure your 'allowance' pay categories and deduction settings are properly configured.
- Reconcile your end of year lodgement data with your payroll report to ensure what you are lodging matches with what has been processed for the financial year. Refer to our recommended reconciliation tips for payment summary lodgement and STP finalisation events.
For a stress free EOFY, we strongly recommend commencing the above process as soon as possible. Fixing any configuration settings or invalid data before you start your end of year processes means you’ll have less reconciling to do after the final pay run of the financial year. It will be much less time consuming and you'll be far less likely to have to make any adjustments after the fact!
Publishing Employee Payment Summaries and Lodging PAYG payment summary reports to the ATO
Last updated: 9 June 2020
Note: This piece is specifically for payroll administrators who have not been STP reporting for FY19/20.
Publishing employee payment summaries
Once you’ve completed all of your End of Year Reconciliation (if not, read here), you will be able to view the payment summaries yourself before they’re published to give you peace of mind.
Deadline for issuing employee payment summaries: 14 July
Once published, you can send a notification to employees at that time or schedule for whenever you choose. The employee will also have access to their payment summaries if they go to the employee portal or in the WorkZone app.
For guidance on publishing Employee Payment Summaries, view our step by step instructions here.
Lodging PAYG payment summary reports to the ATO
The next step would be submitting PAYG payment summary information for your employees to the ATO.
The ATO requires that all businesses submit PAYG payment summary information for their employees by August 14. To make this simpler for you, you can lodge the PAYG payment summaries electronically through KeyPay. Alternatively, if your preference is to lodge the EMPDUPE file through your business portal, we can also facilitate this.
Lodging electronically via SBR is the quickest method, but you must ensure you’re set up for electronic lodgement. To check if you’re set up:
- Go to 'Payroll Settings' > 'ATO Settings' tab and make sure all this information is entered correctly. HINT: you can use the ‘copy from business settings’ option.
- On the Electronic Lodgement & STP tab you will be able to see if you are enabled for electronic lodgement. If not, you can click on the Enable Electronic Lodgement option and this will direct you to our Single Touch Payroll set up process. For STP exempt businesses, this set up will allow electronic lodgement of payment summaries. Remember to register your software ID with the ATO first! Our Enabling ATO Integration for Single Touch Payroll article will assist with that.
- If you have more than one employing entity set up in your business, don’t forget to enable electronic lodgement for all employing entities!
- To check you are enabled, go to 'Payroll Settings' > 'Employing Entities'. If you need to enable the employing entity click on the Enable Electronic Lodgement option within the relevant entity and confirm you have registered the software ID.
All things STP
Last updated: 9 June 2020
Everything you need to smoothly set up and roll out STP within KeyPay.
- What is STP?
- How to register for STP
- STP guide
- STP page in KeyPay
- Validation warnings in STP events
- STP: Processing finalisation events
- Creating and lodging an amended finalisation event
- Other useful articles for STP
What is STP?
STP is a government initiative that was introduced to streamline business reporting obligations. It started from 1 July 2019 for employers with 19 or less employees (businesses with 20 or more employees were required to be STP compliant in July 2018).
In a nutshell, STP requires employers (or their registered agent/intermediary) to report payments such as salaries and wages, PAYG withholding and super information directly to the ATO from their payroll system. This must be reported after every pay run has been finalised but no later than the employee's payment date.
How to register for STP
To help you get started, KeyPay has an STP registration wizard that you can easily follow to enter all the required business details, show you how to register the software ID with the ATO and enable the payroll software for the electronic lodgement of STP information to the ATO.
You can access the wizard from two areas in the software:
- Payroll Dashboard
- ATO settings > Electronic Lodgement & STP tab
Once you’ve accessed the wizard, follow the three steps laid out in our STP Registration Wizard support article and you’ll be enabled for STP!
We’ve prepared an STP guide to help you navigate through all the necessary components required to undertake STP reporting. This includes changes to existing business settings, new configuration settings, how to create pay events and ultimately successfully lodging pay events.
Additionally, our End of Financial Year Guide 2019/2020 - Reporting STP will guide you through housekeeping and then the finalisation process for the 2019/2020 financial year.
STP Page in KeyPay
KeyPay’s STP page is available to all businesses that have enabled STP and can be accessed via Reports > Single Touch Payroll (under the 'ATO Reporting' list)
From here you can view the details of all historical events as well as perform other actions like creating a new pay run, creating an update event and launching the finalisation wizard
More information regarding the STP page can be found here.
Validation Warnings in STP Events
This article lists the validation warnings set up within KeyPay that you may see once you have created a pay/update event. We have put these warnings in place to reduce the possibility of a failed or partially successful lodgement. However, please note, some errors can only be identified AFTER the event has been lodged with the ATO.
STP: Processing Finalisation Events
There are 2 ways within KeyPay to lodge your finalisation event.
The support articles above will guide you through completing your end of year processing (ie processing a Finalisation Event) using each of those methods.
Note that the STP EOFY Wizard does include additional functionality over an update event, being:
- Ability to bulk import RFB amounts for employees;
- Send notification emails from the platform once the finalisation event has been successfully lodged; and
- Accessing the amended finalisation event wizard if further finalisation events are required.
Creating and Lodging an Amended Finalisation Event
If, after having successfully lodged a finalisation event for your employees, you identify that an employee's earnings need to be adjusted, you will need to lodge an amended finalisation event.
This support article provides instructions on how to lodge an amended finalisation event for businesses reporting their end of year through STP.
*Note: Employers are required to lodge the amendment no later than 14 days after having identified the need to do an amendment.
Managing failed or partially successful STP events
There may be instances where a pay event is deemed partially successful. The reason for this would be that one or more employee records failed. N.B. To clarify, all other employees whose records do not fail are successfully lodged with the ATO.
Our Managing failed or partially successful STP events support article provides instructions on how to manage this scenario if it occurs.
Other useful articles for STP:
- I have been reporting STP during the financial year. Do I have to generate payment summaries?
- Resolving Common STP Lodgement Issues
- Lodging an STP earnings reset event to fix incorrectly reported business/employee settings
With all these resources up your sleeves, this EOFY is sure to be organised and stress free!