This article is for users who have Determined Their Last PPE (Pay Period Ending Date) For EOFY and adjusting taxation year-end boundaries for the end of the financial year.
If the change is required, it needs to be made prior to saving your last pay in the 2022/2023 financial year.
Please Note
If you have a weekly or fortnightly pay period, a PPE date of June 2023, and your EFT payment date is before Saturday 01, July; you can skip this step. This step can also be skipped if you pay monthly, with a PPE date of 30 June and an EFT payment date before 01 July.
If the pay for the last PPE date in June is paid to employees in June, then no action is required. Or if the first PPE date in July is paid to employees in July, no action is required.
Tip
If your PPE is 26/06/2023 and you transfer your employees' wages on Tuesday(27/06), Wednesday (28/06), Thursday (29/06), or Friday (30/06), then you don't change your taxation year boundaries.
If payment to employees is made in arrears, i.e., if your first PPE date in July is transferred to your employees' bank accounts with a payment date in July, keep your taxation year boundaries the same.
The last Sunday of the 2022/23 financial year falls on Sunday, 25th June. So, if your company has a PPE on or before 25th June 2023, where the payment to staff will be received on or after 1 July 2023, this payment needs to be reported in the new financial year, not the 2022/23 financial year.
For Example:
- If you have a pay period ending on Friday, 30th June 2023, with payment being made into your employees’ bank accounts in July 2023, i.e., on Tuesday, 04th of July 2023, this pay period will have to be included in the next financial year (2023/24) and excluded from this year (2022/23).
- If you have the first July pay period ending on, e.g., Sunday, 2 July 2023, with payments made to employees’ bank accounts before 1 July 2023, i.e., on Wednesday, 28 June 2023, the 1 July 2023 pay period end would have to be included in the current financial year reporting (2022/23).
If (and only if) one of the above 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:
The rule of thumb is:
if you are making the adjustment for a PPE prior to 30th June.
- Adjust the date to 1 day before your PPE (e.g., PPE 28 June – adjust to 27 June)
If you are making the adjustment for a PPE after 30th June
- Adjust the date to 1 day after PPE (e.g., PPE 3rd July – adjust to 4th July)
Important
- The period-end cannot be changed if you have already saved pay beyond that
date. - If you change the year-end boundaries for the taxation year, please carefully consider the date you are selecting. The system will not allow you to change the year-end boundaries date a second time for the same financial year.
- Do not change the period end boundary if the pay period ending date and the payment date is in the same financial year.
- Create a backup before you change the period-end boundary.
- By default, the period end boundary will be 01 July – 30 June for each financial year.
In summary, the steps you need to take are outlined below:
- Will your wage and salary payments for your last PPE in June (i.e., PPE 28/06/2023) be paid to your staff on or before 30 June?
- If the answer is Yes, go to Point 5.
- If the answer is No, go to point Point 3.
- Will your wage and salary payment for the first PPE in July (i.e., PPE 03/07/2023) be paid to your staff before 1 July 2023?
- If the answer is Yes, you can go to Point 3.
- If the answer is No, you can go to Point 5.
- Prior to processing pays for the affected pay period end, go to File > Company Details > Configuration > Period End > Taxation Year Boundaries (detailed steps below):
- If point 1’s answer (above) was No, change the end date to the day before the last PPE for June (i.e., 27/06/2023).
- If Point 2’s answer (above) was Yes, change the end date to the day after the first PPE for July (i.e., 04/07/2023).
- You'll need to make this change before processing the affected pay period to make sure that the values are reported in the correct tax year.
- 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.
To Change The Taxation Year-End Boundary (if necessary)
The end date selected will always determine which financial year the PPE date falls in. This
period-end boundary acts as a divider to separate the PPE dates towards the end of June from
those in July. Where a PPE date falls on or before the end date chosen, it would be deemed in
this financial year and typically the last pay period end date to use for processing EOFY.
Therefore, any PPE that falls after this period end date would be deemed as the first PPE date to
be reported in the new financial year for Single Touch Payroll.
Once the period end date is set for one year, the following date automatically becomes
the Start Date of the next financial year.
- Navigate to Setup > Preferences.
- Configuration > Period End > Taxation Year Boundaries > select and edit the current FY
For Example (June Pay Period Paid In July)
For example, the last PPE date for June is PPE Wednesday, 28/06/2023, but the employees will only receive payment on Monday, 03/07/2023. The end date for the current financial year will be changed to 27/06/2023 (the day before the PPE date that will be paid in July) in order to include this pay period in the new financial year. The new financial year will begin on 27/06/2023.
Please be careful with changing dates since the system will not let you do it for the second time.
For Example (July Pay Period is Paid In Advance In June)
If the pays for the first pay period ending date in July are paid to employees in advance before the 1st of July, set the end date of the current financial year to a date after the appropriate pay period ending date (the day of the PPE date that was paid in advance in June) in order to include this pay period in the current financial year.
This will cut the taxation year boundary off a day later and ensure the entire pay period is included in the current financial year’s reporting.
Example diagram below: ( PPE 3rd July paid prior to 1st of July as an advance - change the end date to 4th July)
Be careful with changing dates, as the system will not allow you to do it for the second time.
For example (if you have multiple PPEs (i.e., monthly and weekly pay periods)that are contained within the one Wagemaster payroll database)
If there is a calendar month PPE 30/06/2023, processed and paid on 27/06/2023. In addition, there is a weekly PPE Friday, 30/06/2023, processed and paid on Monday, 3rd July 2023.
In this example, the calendar monthly cycle would need to be recorded in this current financial year, but the weekly PPE cycle would need to be reported as the first PPE in the next financial year.
In this instance, the recommendation would be to change the calendar month PPE cycle to be a monthly cycle that ends on 28/06/2023 (later dates are not possible) and then process as anticipated on 27/06/2022.
To Align The Calendar Month (Pay Period Ending To Be A Monthly Cycle)
- Navigate to Setup > Preferences.
- Configuration > Pay Periods > Calendar Month Cycle > Edit
Fill in the description, frequency, and PPE to 28/06/2023.
In this example, the taxation year-end boundaries will be as below:
Navigate to setup > Preferences > Configuration > Period End > Taxation Year Boundaries > select and edit the current FY End Date to be 29/06/2022.
Once the period end boundary date is set for one year, the following date then automatically filters through to be the start date of the next financial year.
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- In the example above, as the taxation year boundary period end date selected is 29/06/2023 for the last day of the 2022/2023 current financial year, any PPE dates that fall after 29/06/2023 will now be reported against the new 2023/2024 financial year for ATO reporting purposes. So, a weekly cycle PPE of 30/06/2023 will now report in the new 2023/2024 financial year and not the current 2022/2023 financial year.
- After processing the end of the financial year, and before processing the next monthly pay cycle on 30/07/2023, amend the monthly pay cycle back to the normal as below:
- Frequency: Calendar Month with PPE: Last Day of Month.
Navigate to Setup>Preferences > Configuration > Pay Periods > Monthly > Edit > Change Frequency back to Calendar Month.
Wagemaster will give you a warning message about year-end boundaries and your final payment for the year. This appears in your system when your system date reaches June
This warning will persist in June until you have visited Setup > Preferences > Configuration > Period End > Taxation Year Boundaries and ticked the box Reviewed Tax Year boundary for the current financial year.
If you have adjusted the taxation year-end boundaries, then you will also need to Determine And Adjust Super Boundaries.
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