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Payment summary reconciliation for EOFY 2021/22 | Payroll Guide

Updated

Overview

A crucial part of wrapping up End of Financial Year (EOFY) is reconciling the data you are about to send the ATO with a payroll report, such as the Detailed Activity report to make sure the figures match. The below will take you through the process of end-of-year reconciliation of payment summaries, and ideally you will review alongside our guide to EOFY 2021/22 Payment Summaries.

Important

If the business has both closely held employees and non-closely held employees, you will need to remove the non-closely held employees from the Detailed Activity report so that you are comparing the same data set.

What you need to do

The below will walk you through how to reconcile your payment summaries. To begin:

Step 1: Downloading and exporting the data
  1. Log into your Employment Hero Payroll classic platform.
  2. Click on the Reports menu
  3. Under ATO Reporting, click on the Payment Summaries option
  4. Select the applicable financial year and click the Show Payment Summaries option.

    Helpful Hint

    This will display:

    • All payment summary for your employees.
    • All ETP information for your employees.
    • A row of action buttons.
  5. Click the Download button and select the Excel option.

    Helpful Hint

    Selecting this option will generate a payment summary report. The report contains the payment summary earnings that you will use to reconcile with the Detail Activity report. It is important to advise you at this stage that businesses with a combination of closely held employees and non-closely held employees, that only closely held employees will appear in this report as you must report non-closely held employees via STP.

  6. Once you have downloaded the Payment Summary report as an Excel file, you can then download the Detailed Activity report.

    Helpful Hint

    Make sure that you use the following filters when downloading the report

    • Date range = financial year if generating by 30th June. If generating the report post this date, select the Last Financial Year option.

    • Pay schedule = All.

    • Group by = Employee default location.

    You now have your two reports to compare.

Step 2 Calculating the figures
  1. From the payment summary excel report, you will notice two tabs:
    • Payment summaries
    • ETP payment summaries.

    Helpful Hint

    There will only be data in the ETP Payment Summaries worksheet if you have terminated an employee and there is an ETP associated to that payment. Otherwise, this worksheet will have no data.

  2. In the payment summary excel report, calculate:
    • Total Payroll Gross Earnings (Column AB) minus;

    • Total 'Not Reported' (Column W) minus;

    • Total 'Payroll Pre-Tax Deductions' (Column AC) minus;
    • Total 'Lump Sum D' (Column Q) minus;
    • total tax-free allowances (Column M) plus;
    • Total taxable component of ETP (Column G in the 'ETP payment summaries' worksheet).

    Helpful Hint

    Column M contains both taxable and tax-free allowances, so separate these amounts.

  3. Then, from the Detail Activity report, review, the Taxable Earnings column. If the total figures between the two reports:

    • Are identical, you can begin publishing payment summaries.

    • Are not identical, we recommend auditing each employee's earnings lines between both reports to drill down exactly where the variance lies and restarting the steps above.

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