End of Financial Year Payroll Processing with Xero

Saturday, 25 June 2016   

Here are the steps to make your EOFY payroll processing with xero easy.

 1. Ensure you have posted the last pay run for the financial year before continuing.

 2. Review your payroll data with the General Ledger for any errors before generating your Employee's payment summaries.

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

4. the General Ledger Report, select the financial year and sort by Account Name. Both the Cash Basis and Show YTD fields should be clear.

Use the following table to check your payroll data by matching the report balances in your Payroll Activity Summary report and the General Ledger Report


Check Matching report balances

In your Payroll Activity Summary                        In your General Ledger Summary
Total Earnings             should match                      Total Wages and Salaries
Total Super                  should match                      Total Superannuation
Total Tax                      should match                      Total PAYG Withholding Payable
 
If balances dont match, check your Pay Run History to find the pay run with the error and process an adjustment.
 
Payment Summaries - must be provided to employees by 14 July.

 Xero automatically prepares and allocates your payroll data to your employee's individual non-business payment summaries. Review these amounts before you finalise them and send off your annual reports to the ATO.
 
  1. Go to Payroll, click Employees, then Payment Summaries.
  2. Check that your organisation name, ABN and postal address information is correct. You can update this information in Organisation Settings.
  3. Enter the signatory name and add the contact number, then click Confirm and Continue.
  4. Select the Financial Year Ending.
  5. Review gross payments, PAYG, allowances, workplace giving, union/association fees, RESC and Lump Sum amounts allocated based on your payroll data.
  6. Identify and fix any payment summary errors.
  7. Enter any RFBA from your fringe benefits tax return to each employee where needed.
  8. Enter any additional Lump Sum amounts paid. This will reduce your employee’s gross wages to ensure the amounts aren't duplicated.

  9. Select all employees.
  10. Click Publish.
Once you have published all the payment summaries, you need to send them to your employees. Use My Payroll to send them via email if you invited your employees to My Payroll, or generate a PDF for printing.