payroll

Prepare Payroll for year end

What you need to do with Payroll for year-end

With the end of the financial year approaching, follow these steps to ensure that your payroll and payroll summaries are in order.

Overview

  • If you haven’t opted into Single Touch Payroll (STP), review your employee PAYG payment summaries – individual non-business.
  • If you have opted into STP, sign off your STP data and send it to the ATO.
  • Create summaries for labour-hire and some employment termination payments (ETPs).

If you’ve opted in to STP before 1 July 2020, you can’t produce payment summaries for the 2020 financial year. Instead, file a pay run in the 2019/2020 financial year and then finalise your STP data.

Before you begin

  • If you’ve set up STP, you don’t need to file PAYG payment summaries. Instead, ensure that you finalise your STP data so the relevant information is automatically sent to the ATO.
  • You can send or print summaries for ETPs – Type R or O. You need to manually produce summaries for labour-hire and other ETP types.
  • You need payroll admin access to prepare payroll data for the end of the financial year.

Review payroll transactions

At the end of the financial year, reconcile your payroll to the general ledger and fix any errors. Ensure you’ve posted your last pay run for the financial year before continuing.

Reconcile payroll data with the general ledger

Run the Payroll Activity Summary report and make sure you select all employees and the financial year you’re checking.

Run the Trial Balance report, select the last date of the relevant period and sort by account name.

Use the following table to check your payroll data by matching the report balances in your Payroll Activity Summary report and the Trial Balance report:

Matching report balances
In your Payroll Activity Summary In your Trial Balance report
Total Earnings should match Total Wages and Salaries
Total Super should match Total Superannuation
Total Tax should match Total PAYG Withholding Payable

If balances don’t match, check your pay run history to find the pay run with the error and process an adjustment.

Once all balances are correct, you need to review the payment summary amounts.

Review payment summary details and fix any errors

Run a Payment Summary Details report, select all employees and the financial year you’re checking before reviewing the amounts for each employee.

If you find any incorrect amounts in the payment summaries, you’ll need to fix these before you continue.

What’s next?

Once you’ve generated payment summaries for your employees, you can submit these to the ATO.

Setting yourself up for the new year

Financial year-end is the perfect time to do a payroll check-up, celebrate your successes, and refocus on business goals.

For more Xero payroll, advice and bookkeeping essentials for your business, visit How We Help You and get started today with Notch Above Bookkeeping, Australia-wide.

Source: Xero

bookkeeping

EOFY resources for small business

End of financial year resources for your small business

Get help with tidying up the books and wrapping up the accounts this end of financial year (EOFY).

Dates to mark in your diary

Here are the key EOFY milestones you need to know. Check out Xero’s handy key dates calendar so you can meet your year-end requirements on time.

  • 30 June: The Australian financial year runs from 1 July to 30 June. At midnight on 30 June, the financial year ends and your business books are closed off. Super contributions must be paid to qualify for tax deductions.
  • 14 July: Reconcile your payroll in Xero so you can submit your end-of-year finalisation declaration via Single Touch Payroll (STP) by 14 July. Your employees can then complete their income tax returns.
  • 28 July: Lodge and pay your Q4 business activity statement (BAS). If you lodge online, you may be eligible for a two-week extension. If you have employees, your super and PAYG instalments are also due.
  • 31 Oct: You have until 31 October to submit your tax return, but there are exceptions. Check the ATO website or ask your tax agent.

Processing payroll

Understand how to review, reconcile and amend your payroll, so you can finalise and lodge your Single Touch Payroll (STP) declaration by July 14.

First-timers

If it’s your first time using Xero to complete your end of financial year:

Pros

If you’ve used Xero to complete your end of financial year before:

Closing the books

Familiarise yourself with bank reconciliations, closing off accounts in Xero, EOFY adjustments and more.

First-timers
Pros

Setting yourself up for the new year

Financial year-end is the perfect time to do a check-up, celebrate your successes, and refocus on business goals.

For more Xero tips, advice and bookkeeping essentials for your business, visit How We Help You and get started today with Notch Above Bookkeeping, Australia-wide.

Source: Xero

green payroll binder

Employer guide to family and domestic violence

What are your legal responsibilities as an employer?

As an employer, you need to be aware that the Fair Work Act provides minimum entitlements for employees.

Employers can provide more than the minimum entitlements under workplace policies, enterprise agreements and informally.

Under the Fair Work Act, employees dealing with the impact of family and domestic violence can:

  • take unpaid family and domestic violence leave
  • request flexible working arrangements
  • take paid or unpaid personal/carer’s leave, in certain circumstances.

Unpaid family and domestic violence leave

Employees (including casual and part-time employees) are entitled to 5 days of unpaid family and domestic violence leave each 12 month period. This leave:

  • doesn’t accumulate from year to year if it isn’t used
  • is available in full when an employee starts working at a new workplace
  • renews in full at the start of each 12 month period of employment
  • can be taken as a single continuous period or separate periods of one or more days.

Employers and employees can agree for an employee to take less than one day at a time, or for the employee to take more than 5 days of leave.

What is family and domestic violence?

The Fair Work Act defines family and domestic violence as violent, threatening or other abusive behaviour by an employee’s close relative that seeks to coerce or control the employee and causes them harm or to be fearful.

Who is a close relative?

A close relative is:

  • an employee’s:
    • spouse or former spouse
    • de facto partner or former de facto partner
    • child
    • parent
    • grandparent
    • grandchild
    • sibling
  • an employee’s current or former spouse or de facto partner’s child, parent, grandparent, grandchild or sibling, or
  • a person related to the employee according to Aboriginal or Torres Strait Islander kinship rules.

When can employees take unpaid family and domestic violence leave?

Employees can take leave when they:

  • are experiencing family and domestic violence
  • need to do something to deal with the impact of that violence
  • it’s impractical to do so outside their ordinary hours of work.

Notice and evidence

If an employee takes family and domestic violence leave, they have to let their employer know as soon as possible. This can happen after the leave has started. Employees also need to tell their employer how long they expect the leave to last. An employer can ask for evidence, which can include:

  • documents issued by the police
  • documents issued by a court
  • family violence support service documents, or
  • a statutory declaration.

Confidentiality

Employers have to take reasonably practical steps to keep any information about an employee’s situation confidential when they receive it as part of an application for leave. This includes information about the employee taking family and domestic violence leave, including leave records as well as any evidence provided by the employee.

Employers aren’t prevented from disclosing information if it’s:

  • required by law, or
  • necessary to protect the life, health or safety of the employee or another person.

Employers need to be aware that any information about an employee’s experience of family and domestic violence is sensitive. If information is mishandled, it could have adverse consequences for their employee including serious injury or harm. It is recommended that employers work with their employee to discuss and agree on how this information will be handled.

Visit fairwork.gov.au to learn more about family and domestic violence leave including access to their free resource Employer Guide to Family and Domestic Violence.

Certified Xero Bookkeepers

Notch Above Bookkeeping are certified Xero bookkeepers offering agreed-price monthly fees so you know exactly where you stand. No hidden extras and no ticking clock. Browse our range of Xero bookkeeping services below and get in touch to discuss which plan best suits the needs of your business.

Source: Fair Work Ombudsman

fringe hair cut

Increased penalty rates for casual hair and beauty weekend workers

Hair and beauty workers get penalty rate hike

As part of the agreement, the casual weekend penalty rates will increase in five instalments starting from 31 January 2022 and finishing on 31 December 2023. From 3 November 2021 to 30 January 2022, casuals will continue to be paid their usual weekend penalty rate.

Currently, under the Hair and Beauty Award, a casual’s weekend penalty rate doesn’t include their 25% casual loading. This is changing so that casuals who work weekends are now entitled to be paid a weekend penalty rate that also includes their casual loading to compensate for permanent entitlements like sick and annual leave.

The announcement follows a decision made by the Fair Work Commissioner back in October after a process involving unions and industry associations.

Back in January 2020, Fair Work invited the Australian Workers’ Union (the AWU), the Shop, Distributive and Allied Employees Association (the SDA) and Hair and Beauty Australia (HABA) to provide notice as to whether they wished to provide further materials in relation to the Saturday and Sunday penalty rates applicable to casual employees covered by the Hair and Beauty Award.

In July, Hair Stylists Australia (which is powered by the AWU) announced an agreement had been reached between themselves, the SDA and HABA which they would put forward to the Fair Work Commission.

HSA said a total of around $5.75 per hour will be added to weekend casual rates, and at the end of the phasing-in period, this means a casual hair stylist working a full eight-hour day over the weekend would take home an extra $92.

Meanwhile, the Hair and Beauty Award has already increased by 2.5% from 1 November alongside a whole bundle of industry awards as part of its Annual Wage Review 2021, as announced back in June.

Notch Above Bookkeeping are Xero business bookkeepers and Certified Xero Platinum Partners Australia-wide, specialising in cloud bookkeeping setup, training and ongoing support. Call us on 1300 015 130.

Source: mybusiness

green payroll binder

Stapled super funds start this month

Request stapled super fund details for employees

What you need to do from 1 November 2021

From 1 November 2021, if you have new employees start, you may have an extra step to take to comply with choice of fund rules if they don’t choose a super fund. You may now need to request their ‘stapled super fund’ details from the ATO.

A stapled super fund is an existing super account that is linked, or ‘stapled’, to an individual employee so that it follows them as they change jobs.

If you don’t meet your choice of super fund obligations, additional penalties may apply.

The change aims to reduce account fees by stopping new super accounts from being opened every time an employee starts a new job.

Get ready

To make sure you’re ready to request stapled super fund details, check and update the access levels of your authorised representatives in ATO online services.

If an authorised representative doesn’t:

  • have full access to ATO online services, they will need to have the ‘Employee Commencement Form’ permission in order to request a stapled super fund
  • need to access this service, you should remove this permission for them to protect your employees’ personal information.

What employers need to do from 1 November 2021

You may need to request stapled super fund details when:

  • your new employee starts on or after 1 November 2021
  • you need to make super guarantee payments for that employee, and
  • your employee is eligible to choose a super fund but doesn’t.

You don’t need to offer a choice of super fund to some employees, but you may still need to request their stapled super fund details. This includes employees that are either:

  • temporary residents
  • covered by an enterprise agreement or workplace determination made before 1 January 2021.

To review each itemised step of the stapled super fund process, visit the ATO website or contact Notch Above’s team of Xero certified cloud business bookkeepers Australia-wide on 1300 015 130.

Source: ATO

green payroll binder

Stapled super funds

Extra ‘super’ step when hiring new employees

Most new employees are eligible to choose the super fund into which employers pay their super guarantee contributions.

Currently, when a new employee doesn’t choose their own super fund, the employer must pay super contributions into their default fund.

From 1 November, if any new employees start, the employer may have an extra step to comply with the choice of fund rules.

If a new employee doesn’t choose a super fund, the employer may need to request their ‘stapled super fund’ details from the ATO.

A stapled super fund is an existing super account that is linked, or ‘stapled’, to an individual employee so that it follows them as they change jobs.

The change aims to reduce account fees by stopping new super accounts from being opened each time they start a new job.

From 1 November, employers will be able to request stapled super fund details for new employees using Online services for business.

What employers can do now

To make sure you’re ready when the time comes, check and update the access levels of your authorised representatives using Online services on behalf of your business. This will also protect the personal information of your employees.

Please contact Notch Above’s Business Bookkeepers Australia-wide on 1300 015 130 if you have any queries about stapled super funds prior to 1 November. We are Xero Platinum Certified bookkeepers operating via Xero cloud bookkeeping.

Source: ATO

retail shopping mall

Minimum Wage Rate 2.5% increase

Queensland Minimum Wage Rate will increase by 2.5%

Minimum wages in the Retail Award increase from 1 September.

The FWC’s Pay Calculator and Pay guides now have updated rates.

For the list of awards that will increase later in the year, see When does the increase start?

Following the Annual Wage Review 2021, the Fair Work Commission (FWC) announced a 2.5% increase to the national minimum wage and all award wages. The increase to award wages is happening in 3 stages. The FWC has also issued decisions to change some terms and conditions in several awards.

What do you need to do?

You can find the new minimum pay rates in the FWC’s Pay Calculator and Pay guides, for all awards that increased from 1 July and 1 September 2021. The Pay Calculator and pay guides will be updated for the awards increasing in November closer to their start date. For the list of awards that increase in November, see When does the increase start?

You can also use Find my award if you’re not sure which award applies to you.

Who does the increase apply to?

The increase applies to anyone who is paid minimum award wages or the national minimum wage.

Most employees are covered by an award. If you’re not sure which award applies, use Find my award.

If you’re covered by a registered agreement, you should check it to see whether this increase affects you.

For anyone not covered by an award or an agreement, the new national minimum wage is $772.60 per week or $20.33 per hour.

When does the increase start?

The new national minimum wage applies from your first full pay period on or after 1 July 2021.

There was also an increase to the Super guarantee for all eligible employees from 1 July 2021.

The increase to minimum award pay rates is happening in 3 stages.

The increase doesn’t affect employees who already get paid more than their new minimum wage.

1 July 2021 award increase

Most awards increased from the first full pay period on or after 1 July 2021.

1 September 2021 award increase

The increase for the Retail Award applies from the first full pay period on or after 1 September 2021. This means if you have a weekly pay period that starts on Mondays, the new rates apply from Monday 6 September 2021.

You can find the new minimum rates in our Pay Calculator and Pay guides.

1 November 2021 award increase

21 awards increase from the first full pay period on or after 1 November 2021. Read more »

Please note, wage rate changes will need to be done manually which we do in consultation with our payroll clients. We strongly recommend that you make time to check your settings.

For assistance, contact our Xero Platinum Certified business bookkeepers at Notch Above Bookkeeping, Australia-wide, on 1300 015 130.

Source: Fair Work Ombudsman

workers looking at laptop

STP Phase 2 starts January 2022

Learn what STP Phase 2 means for employers

Single Touch Payroll (STP) Phase 2 reporting starts 1 January 2022.

If you employ staff, you’ll need to be ready for this change.

If your business uses Xero, it will be compliant.

If not — or you know someone who is not — there’s time to start thinking about and planning your STP Phase 2 reporting now.

STP Phase 2 reporting means changes to the way employers report:

  • amounts paid to staff
  • income types
  • employment conditions.

The way you lodge and the due date of your STP reports don’t change.

Your payroll software should be updated by your software provider with steps provided for you to take. However if you use a manual system, we strongly recommend that you make time to check your settings in advance of the changeover deadline.

Check the ATO’s guidelines and contact the team at Notch Above Bookkeeping on 1300 015 130 to help you understand the changes and what they mean for your business.

Australian Accounting Awards Bookkeeping Firm of the Year Finalists 2021 and 2020.

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Employment Contract Tool