Payroll year end processing

This tutorial demonstrates how to finalise the payroll using Single Touch Payroll as well as open a file for the new financial year.

1. Payroll finalisation on final pay

If you are doing the last pay for the financial year. Simply flag the box "Final pay for financial year" as yes. This is on each pay slip. Then lodge as normal.

I didn't mention in the video but if you have employees that are not being paid in the final payroll batch for the year then just add a pay slip for them with no pay on it and flag that as the final pay. This is basically the process in the update event that I demonstate next.

2. Payroll finalisation using update event after year end (from 5:16 in the video)

If you did not flag the last pay slip in the financial year as final or you have to adjust the amounts then you need to lodge an update event. This is basically the same process but there is no gross or net pay on the pay slip(s).

Also note that the batch should have all dates set to 30 June, i.e. payment date, from date and to date.

Note that if you are doing the pay event because you need to correct the amounts notified to the ATO you will need to enter a separate pay slip to correct the amounts. You cannot correct it on the update event pay slip as the update event pay slip has to have zero gross and tax.

3. Opening a new file for the new financial year (from 11:23 in the video)

To open a new financial year click on Setup -> My business details and there is a button called Open a new financial year. This saves a copy of your file and removes the prior year transactions so you can start the new financial year with a clean slate.