Checklist for 2019 Payroll Reconciliation

2nd July 2019 |

If your business is not yet reporting its payroll through Single Touch Payroll (STP), you will need to manually issue and lodge your 2019 annual PAYG Payment Summaries. These need to be distributed to your employees by 14th July 2019 and received by the ATO by 14th August 2019.
Be glad to know that this will be the last year that you will need to do this as, starting 1 July 2019, businesses are required to report their payroll through Single Touch Payroll (STP).

For business who have started using STP in the 30 June 2019 financial year, you will have until 31 July 2019 to submit your finalisation declaration. Once this is done, the ATO will receive a notification that you have provided all required information for the financial year through your STP reporting. You are not required to produce PAYG Payment Summaries for your employees as they will have access to this information via their myGov accounts.

Before you issue PAYG Payment Summaries or submit your finalisation declaration, here are some items to tick off to check that your payroll reconciles and you are correctly reporting to the ATO and your employees!
1. Check your payroll setting for your company’s details (Name, Address, ABN, authorised person to issue the PAYG Payment Summaries or submit finalisation declaration, etc).
2. Check all employee details are complete and up to date.
3. Check that your pay items have been set up correctly (ie. Allowances, reportable super, deductions, Lump Sum, ETP payments, etc) and are correctly linked (Gross wages, tax, etc).
4. Check that your payroll accounts are linked correctly to each pay item (expenses & liabilities).
5. Make sure that all wages and entitlements have been processed and aid through the payroll function.
6. Review your Payroll Summary Report and check that it agrees with the closing balance of your payroll accounts in your General Ledger.
7. Investigate and make adjustments if there are any discrepancies in the wages, wages payable, PAYGW payable, superannuation, superannuation payable and any other payroll accounts.
8. Always check and double check before issuing the PAYG Payment Summaries or submitting finalisation declarations as your employees will be including these figures in their personal income tax returns.

If you’re not sure where to start or need assistance with any of the above, contact Crosscorp today!