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End of Financial Year Payroll Guidelines

All businesses should now be SuperStream compliant. The ATO has published a useful step-by-step guide on its website to assist you with this. Click here to review this guide. 

If you have 19 or fewer employees, or a turnover of less than $2 million a year, you can use the ATO's free Small Business Super Clearing House. Alternatively, you can choose from several commercial options or, your super fund may have a clearing house you can use.

Wage Easy is compatible with the SuperStream standard however you may still wish to choose to use a super clearing house instead.

To help you prepare for a smooth rollover to the next financial year, below are our recommended end of year processing guidelines.

  1. Check your payroll version

    Help > About Sage WageEasy Payroll

    To check which is the latest version and to download the latest version of WageEasy/Wagemaster, click here.

    You need to be using the latest Sage WageEasy release to ensure your end of year processing for this current year is compliant with current ATO requirements.

  2. Back up your Sage WageEasy / Wagemaster company file

    File > Back up/Restore > Back up

    Take a backup of your Sage WageEasy / Wagemaster company files.

  3. Determine your last pay period end for the financial year

    File > Company details > Configuration > Period End > Taxation Year Boundaries

    Australian Tax law stipulates that income tax is assessed based on the financial year that any wage or salary payment is received. This means that the normal Pay Period End (PPE) dates used for normal reporting may have to be adjusted to ensure that wage and salary payments are reported in the correct year.

    For example:

    1. if you have a pay period ending on Saturday 30 June 2018 with payment being made into your employees’ bank accounts on or after Sunday 1 July 2018, then 30 June 2018 pay period end would need to be included in the next FY and excluded from this FY.
    2. if you have the first July pay period ending on Sunday 1 July 2018 with payments made to employees’ bank accounts before 1 July 2018, the 1 July 2018 pay period end would have to be included in 2017-18 FY reporting.

    If (and only if) one of these applies to your business for this year, you will need to adjust your financial year Period End by changing the financial year End Date to:

    1. the day before your last PPE in June (29/06/2018), which will exclude PPE 30/06/2018 from this tax year; or
    2. the day after the first PPE in July (02/07/2018), which will include PPE 01/07/2018 in this tax

    Go to File > Company Details > Configuration > Period End > Taxation Year Boundaries to make this change.

    IMPORTANT – if you need to make this change to the PPE for taxation reporting you must do this BEFORE processing the pays for the appropriate pay period end. This will ensure that the income and tax values for this pay period end are flagged for inclusion in the correct financial year.

    In summary, the steps you need to take are outlined below:

    1. Determine if wage and salary payments for your last PPE in June will be paid to your staff on or before 30 June 
    2. Determine if wage and salary payment for the first PPE in July will be paid to your staff (in advance) before 1 July

      If the answer is YES to either 1 or 2 above, proceed to Step 4 and Step 5.

      If the answer is NO to either 1 or 2 above, proceed to Step 3 through to Step 5.

    3. PRIOR to processing pays for the affected Pay Period End go to:

      File > Company Details > Configuration > Period End > Taxation year Boundaries and change the End date to the day before the last PPE for June (i.e. 29/06/2018) or the day after the first PPE for July (i.e. 02/07/2018). If the last PPE for June is 30 June 2018 then change Period End to 29 June 2018 or if the first PPE for July is 1 July 2018 set the Period End to 2 July 2018.

    4. You must make this change PRIOR to processing the affected pay period, to ensure that the values are reported in the correct tax year
    5. Process your payroll as normal and check that year to date values reflect the correct allocation of wage and salary payments to the correct financial year

    IMPORTANT NOTE WITH REGARDS TO SUPERANNUATION PAYMENTS AND REPORTING: Changing the Period End | Taxation Year Boundaries will only affect the reporting on Taxable Gross, Tax and ATO Reportable values on the employee ATO Payment Summaries and in the EMPDUPE file. Please also consider the treatment of Superannuation contributions.   

    See Last Pay Day in the Financial Year 

  4. Check your company are up-to-date

    File > Company Details > Change Company Details

    Company Name, Trading Name, ABN and ACN. The details showing in these fields in Sage WageEasy / Wagemaster must be consistent with the information shown in the Australian Business Register and/or ASIC Register. If this information is incorrect, please update your details using the Registration Wizard and email the amended registration form support@mastergroup.net.au 

    Your Company suburb MUST be in the CITY field and the State Field MUST be in CAPITALS or the ATO will reject your data.

    See Company and Employees' Details 

  5. Check your employee details are up-to-date

    Reports > User Defined > Employee Address & Tax File Number

    All employees must have full names (no nicknames), valid tax file numbers and addresses (ensuring that the suburb/town is in the CITY field and if inserted, that Australia is spelt correctly).

    Run the user defined report Employee Address & Tax File Number and make any adjustments.

    When you run this report, blank spaces in the Tax file number column is an indication that the tax file number is missing for the employee or the employee file is a duplicate in the database.

  6. Check your Allowances and Deductions settings

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

  7. Set up Reportable Employer Superannuation Contribution (RESC)

    Check that any employees with a Salary Sacrifice for Superannuation have the Reportable Employer Superannuation Contribution (RESC) option setup.

    See Reportable Employer Superannuation Contributions  

  8. Run the Wage Easy Query

    If you have a RESC, you will need to install and run a query to update the reports

    See Install Wage Easy Queries

  9.  Reconcile Superannuation

    Compare the Superannuation Report in Wagemaster/Wage Easy for whole year against the Superannuation Report from Agrimaster

    See Reconcile Superannuation

  10. Reconcile your payroll between Wagemaster and Agrimaster

    As per Step 3, with your PPE date at the last bold date in the June 2018 calendar we recommend that you run the following reports for your end of financial year payments and reconcile these against your accounting system, or bank statements.

    • Reports > Wages Tax Deductions (Details)
    • Reports > Payment Summary > Year-to-Date > Financial Year-to-Date
    • Reports > Employee > Allowances > Year-to-Date Financial > Employee All
    • Reports > Union Fees > Year-to-date
    • Reports > ATO Payment Summaries > ATO Payment Summary Differences - if there are any differences, they should be justifiable, i.e. ATO payment summary values were manually changed on the employee’s Payments | ATO Payment Summary
    • Reports > ATO Payment Summaries > ATO Payment Summary Report (ATOPS) - this report will display exactly what will appear on individual ATOPS. This will confirm if any employee has any additions/deductions that need to appear on their ATOPS. This is YOUR copy for your employee individual
    • Reports > Payment Summary > Financial Year Difference - will show any payments made between what you have chosen your Year End date to be and 30/06/18, Boundary changes as discussed in Step 3
    • Reconcile Wages in Agrimaster.

    NOTE: It is advisable to check your period end date for the 2017-18 FY in each database by going to File > Company Details > Configuration > Period End. Look at the Start Date and End Date for 2017-18 FY. Those are the dates you should use when running any of the recommended reconciliation reports above for comparison against your accounting system or external records. If you are changing the Start and Finish date when running a particular report, please also remember to hit the “Refresh” icon when you have entered the new date parameters in the particular report screen.

    See Reconcile Wages Tax in Wagemaster Payroll

  11. Generate your Employee Leave Entitlement Report

    Reports > Employee > Leave Entitlement

    As of the last day of the financial year, June 30, we recommend you generate the Employee Leave Entitlement report to get a snapshot of the accrued leave owing to all employees. Provide your accountant a copy of this report so it can be included on your Balance Sheet.

    See Generate the Employee Leave Entitlement Report

  12. (Optional) Printing Individual ATO Payment Summaries (STP has replaced this step)

    Reports > ATO Payment Summaries > Print Individual Payment Summaries

    Once all details have been balanced and verified, you may print the individual ATO Payment Summaries (ATOPS).

    For those employees who have provided a written request to have their ATOPS emailed, ensure that you have configured your company Email/Proxy settings from

    File > Company Details > Configuration > Email/Proxy

    You will also need to ensure you have a valid email address entered for the employee, from Employee > General > Email/Internet and that it has been selected as the Pay slip/ATOPS Email Destination. This will also need to be checked from Payments > ATO Summaries > Delivery Options

    See Process Payment Summaries in Wagemaster/Wage Easy

  13. Sending the final STP reporting event for the year (This replaces the EMPDUPE file if you are using STP)

    STP > STP Update > All Employees > OK > Mark All as Final > Select All > Report to ATO

    When you have completed your pay processing for the year, including submitting all Pay Events and update events, you need to notify the ATO that you have provided all information, for all employees, for the year.

    This is done by reporting an STP Update that has the Final Pay checkbox ticked for each employee included in the update event.

  14. Backing Up/Archiving your Data 

    The Team at Mastergroup cannot stress enough the importance of backing up your data. Save the back up to a secure location (we recommend m:Drive), that can be removed from the premises and is clearly labeled as an historical or archived EOFY back up.

    See Back up your payroll file to m:Drive

  15. (Optional): Housecleaning

    File > Maintenance > Housecleaning

    Housecleaning is only recommended under specific circumstances. House cleaning is a process that will remove information (pay slips and terminated employees) relating to the previous financial year(s) from your Sage WageEasy / Wagemaster database. Please note that if you perform a house clean, your pay period ending dates, payslips, terminated staff from June last and prior years will all be deleted. We only recommend housecleaning if you have a large staff turnover and the processing/performance of payroll tasks is affected. Even so, it is recommended to keep at least five years of financial data in the copy of the database that will remain the live database (7 years is ideal however may not be practical for all customers). It is imperative that you archive reports and take archive backups of your data prior to housecleaning.

Before the First PPE in the new tax year, you may need to update your tax tables. To update your PAYG tax tables, read this article.

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