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Determine The Last PPE (Pay Period Ending Date) For EOFY

This article is for users to determine their last pay period in the financial year and make the payments accordingly.

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 ATO regards the STP payment date as determining the financial year in which the pay falls.

In Wagemaster, the STP payment date results from the EFT processing date. The below is an example of the EFT processing and so the resulting STP payment date is June 30, 2021.Screenshot_2021-06-09_084406.png

The last day of the 2020/2021 financial year falls on Wednesday, June 30. So, if your company has a PPE on or before 30 June 2021 where the EFT date to process the EFT file is July 1, or later, then this will result in an STP payment date of the same value. So, the June 30 PPE with an STP payment date of July 1, needs to be reported in the new financial year, not the 2020/2021 financial year.

If this is the case for your business you need to change the financial year period end to exclude any PPE dates in Wagemaster that fall on or before June 30, 2021, where the EFT & STP payment date to the employees will be made in 2021/2022 financial year.

If both the PPE date and the STP payment date to employees are in the same financial year, no action is required.

The last Sunday of the 2020/2021 financial year falls on Sunday 27th June. So, if your company has a PPE on or before 27th June 2021 where the payment to staff will be received on or after 1 July 2021, this payment needs to be reported in the new financial year, not the 2020/2021 financial year.

Please Note

If you have a weekly or fortnightly pay period, PPE date of June 2021, and your EFT payment date is before Thursday 01 July, you can skip this step. This step can also be skipped if you have monthly pays, with a PPE date of 30 June and an EFT payment date before 01 July.

Year-End Boundaries For End Of Financial Year1.png

If both the PPE date and the payment date to employees are in the same financial year, no action is required. The payment of the pay period ending 30/06/2021 should leave your bank account on 30th June 2021 by the bank cut off times if you want to fall within this same financial year.

The last day of the 2020/2021 current financial year falls on Wednesday 30th June. So, if your company has a PPE on or before 30 June 2021 where the payment to staff will be made on or after 1 July 2021 in the new financial year, this payment needs to be reported in the new financial year 2021/2022, not the 2020/2021 current financial year. 

Determine your last payday in the financial year and create an additional pay run if required. 

 The video below will take you through:

  • What is your last payday in the financial year?
  • How to create a new pay period?

 
If your PPE is ending on 30th June, you might consider Processing Wages In Advance in order to fall within the same financial year. 
If you are paying your last pay period of June on 1st July or later then you will need to adjust the taxation year boundaries as that pay run will be included in the new financial year.  
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