6 Housekeeping tips for End of Financial Year

1
6 Housekeeping tips for End of Financial Year
2

• Fixing any configuration settings or invalid data
  before you start end of year processes will mean
  your clients will have less reconciling to do
  after the final pay run of the Financial Year.

3

• 1. Have you checked employee details?
• Ensure employee name, address, date of birth and
  Tax File Numbers are valid. If an employees Tax
  File Number has been entered as 111111111, you
  should make sure you contact the employee for the
  correct data. By making sure that data is
  correct, itll save you from having to resubmit
  STP finalisation.

4

• 2. Have you checked approved working holiday
  makers?
• Do your clients have approved working holiday
  makers in their business? Check if their
  employees working holiday maker flag is correct.
  This can be done on the employees tax file
  declaration page.

5

• 3. Do you need to report Fringe Benefits Tax for
  any employees?
• Make sure youre familiar with their reporting
  requirements. You can easily report FBT for each
  employee via Single Touch Payroll as an STP
  event, or via payment summaries if the client
  isnt yet using STP.

6

• 4. Have you allocated the correct STP
  classification to pay categories?
• Ensure you have your pay categories/elements/allow
  ances set up with the correct STP classification.
  These classifications will determine whether
  earnings should be reported as gross earnings or
  allowances etc., or whether they shouldnt be
  reported (e.g. living away from home allowances).

7

• 6. Ensure youre set up to increase the SG rate
• The legislated Superannuation Guarantee (SG) rate
  will increase from 9.5 to 10 from July 1 2021.
  You can rest assured we will be applying this
  increase automatically. However, there are
  exceptions if

8

• The Automatically update super rates checkbox
  is not ticked in Payroll Settings.The Override
  checkbox in the Super rate column in an
  employees Pay Rates screen is tickedThe
  Override checkbox in the Super rate column of
  any pay rate template is ticked
• Ensure your settings are changed accordingly if
  you want an automatic update!
• https//www.ikeep.com.au/