DIY Payroll Professionals – Seven Things You Need to Know this EOFY
Posted by: on 14 June 2014 in Payroll
June 10 2014 – by ADP Insider
The end of the financial year can be a stressful time for payroll professionals. Last minute changes to legislation, missing and incorrect employee data are just some of the headaches that have to be managed. If you’re battling this yourself, the pressure to get it right and on time is very real.
So we went around the office at ADP Payroll and asked our payroll consultants “what’s the one thing a payroll person should do for a successful EOFY?” Here’s what we came up with.
1. Record Payments in Payroll System
All payments made to employees such as salary, wages, allowances, etc. must be recorded properly in the Payroll System, as should all reportable fringe benefits to ensure correct and accurate Payment Summaries. Employee details also need to be current and accurate, for example, employee addresses, tax file numbers, date of birth and postcodes.
2. Validate Company Data
All company data should be validated. Have there been any significant changes in your business? Is your ABN number correct? Is the authorised signatory still current? Has your business moved address?
3. Payment Summaries MUST Line Up
All totals and figures must reconcile. Any disparity between Payment Summaries, the Business Activity Statement and the Business Instalment Tax Rates can result in an audit by the ATO and incur costly penalties and catch up payments
4. Provide Payment Summaries on Time
Payment Summaries are required by law to be provided to employees no later than 14 July.
5. Superannuation Rates are Rising
Super rates are rising from 9.25 to 9.5%, taking effect as of the first payroll of the year. (This will apply to any payroll with a pay date in July, 2014, irrespective of the period the employee worked.)
6. Tax Variation Allowances
If you have employees with a tax variation or variations on allowances, for example a car allowance, you must have current authorisation from the ATO to reduce the tax for 2014-15.
7. Take Care of Superstream
SuperStream is coming [www.adppayroll.com.au/SuperStream]; you must find a third party provider (a Gateway). Alternatively ADP’s EPS service can take care of this for your business.
Running an in-house payroll is not for the faint hearted, it is vital to get it right, not only for legal compliance but to support your employees and ensure business continuity.
This list doesn’t cover everything, but covering off on these should set you up well. Remember if you need any assistance with payroll solutions here at ADP we are more than happy to help. Good luck and happy End of Financial Year