ATO requirements are that all salary and wage payments must be reported in the financial year they are received (i.e. paid to your employees).
The last day of the 2018/2019 financial year falls on Sunday 30th June. So, if your company has a PPE on or before 30 June 2019 where the payment to staff will be received on or after 1 July 2019, this payment needs to be reported in the new financial year, not the 2018/2019 financial year.
If BOTH the PPE date and the Payment Date to employees are in the same financial year, no action is required. Please skip to the next step.
If this is the case for your business, you need to change the financial Period End to exclude any PPE dates that fall on or before 30 June 2019 where the payment to the employees will be made in the 2019/2020 financial year.
Year-End Boundaries for End of Financial Year
Instructions for changing the Period End are found below.
Go To: File > Company details > Configuration > Period End > Taxation Year Boundaries
- If the change is required, it needs to be made prior to saving your last pay in the 2018/2019 financial year.
- The Period End cannot be changed if you have already saved pays beyond that date.
- DO NOT change the Period End boundary if the PPE date and the payment date are in the same financial year
- Create a BACKUP before you change the “Taxation Year Boundary”
- By default, the “Taxation Year Boundary” will be 01 July – 30 June for each Financial Year.
- This procedure is ONLY utilized in instances where the Pay Period End date falls on or before 30/06/2019 but the Employees do not receive their wages until 1st July 2019 or later.
The End Date selected will always determine the final PPE date is to be included in a financial year. 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 by Wagemaster 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 then automatically filters through to be the Start Date of the next financial year.
Please note that once a payment has been processed past the set Period End date referenced in the Taxation Year Boundaries screen, these dates cannot be changed.
Taxation Year End Dates are found under:
Setup > Preferences > Configuration > Period End > Taxation Year Boundaries.
Pay Period End (PPE)
Pay Period End dates are represented in bold upon selecting the PPE: menu option on the standard Wagemaster toolbar. The gold background indicates the currently selected PPE.
Pay Periods setup is found under: File > Company Details > Configuration > Pay Periods.
Example: Where multiple PPEs are contained within the one Wagemaster Payroll Database
There is a Calendar Month PPE 30/06/2019 but anticipated processing and paid on 15/06/2019. In addition, there is a Weekly PPE 28/06/2018 pays processed and paid on Monday 1st July 2019.
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 27/06/2018 and then processed as anticipated on 15/06/2018.
To align the Calendar Month, Pay Period Ending to be a Monthly Cycle, go to File > Company Details > Configuration > Pay Periods > Calendar Month Cycle > Edit to be a Monthly Cycle with a Pay Period End as 27/06/2019.
The Taxation Year Period End Date can now be selected to End at 27/06/2019 for 2018/2019 via
File > Company Details > Configuration > Period End.
In the example above, as the Taxation Year Boundary End Date selected is 27/06/2019 for the last day of 2018/2019 Financial Year, any PPE dates that fall after 27/06/2019 will now be reported against the new 2019/2020 financial year for ATO Reporting purposes. So, a weekly cycle PPE of 28/6/2019 will now report in the 2019/2020 Financial Year and not the 2018/2019 Financial Year.
After processing End of Financial Year, and before processing the next Monthly Pay Cycle on 15/07/2019, amend the monthly pay cycle back to the normal.
Frequency: Calendar Month with PPE: Last Day of Month.
File > Company Details > Configuration > Pay Periods > Pay Periods > Monthly > Edit > Change Frequency back to Calendar Month.
Possible Alternative to changing the period end
Remit the funds to the employees earlier than normal for that final pay in the financial year. The practicality of this would depend on your business processes/operating procedures and the amount of pay periods to be reported in the financial year.