Finance - End Of Year Processes 2022-2023

Please see below articles of Interest regarding the EOY Process

We know there’s a lot to stay on top of so, to make this time of year easier for you, we’ve set out the following steps you need to take to help get you sorted for this financial year and to gear up for the next one.

Here is a recording from our EOY Webinar from last year if you missed it!

https://vimeo.com/720939468/d638093b21

Our upcoming webinar will appear here:

Please download our Checklist to follow

1 Step 1 - Reconcile your accounts
2 Step 2 - Check your STP
3 Step 3 - Check any outstanding shifts
4 Step 4 - Run your final cut-off payroll
5 Step 5 - Send your final STP
6 Step 6 - Finalize your payroll tax
7 Step 7 - Set up your new financial year
8 Step 8 - Change in Superannuation Percentage

Key Things to Remember

Please Reconfirm your end of Finanical Year dates and Super Cut off Dates before you start your end of year process.
Any Adjustments to Payslips need to be completed before your final STP is processed- Otherwise they HAVE TO be processed the following year. As you cannot return after you close of your STP.
Ensure your Terminated Employees have Termination date and Reason on their profile

Step 1 - Reconcile your accounts

We recommend that you reconcile your payroll General Ledger accounts as of the end of May 2023

It is important that your Gross Wages, PAYG Tax and Superannuation accounts are all reconciled to your GL as of the end of May. Please also pay attention to any RESC ( Salary Sacrifice ) and allowances.

If you identify any variances in this step, please rectify these prior to running your final payroll for this financial year.

Remember, you can process a negative pay so, any adjustments required to employee gross earnings or tax can be done through a normal payroll run.

Other Key Things to Check

Ensure your allowances are set up correctly in line with the ATO requirements
Ensure all overpayments have been adjusted accordingly within reports

Step 2 - Check your STP

Please review your STP submissions for the current financial year and ensure that they are all at completed status.

If there are any not at completed status, please ensure these submissions are completed prior to processing your final STP for the financial year.

Step 3 - Check any outstanding shifts

Prior to running your final payroll for the current financial year, we would recommend that you review the confirmed shifts area in finance and ensure that there are no outstanding shifts that require payment, invoicing or both.

Remember, you can discard the remaining half of any shifts that are at pay only or invoice only status by right-clicking on the timesheet number and selecting discard shift permanently. Please only do this if you are not going to process the remaining half of the shift.

Step 4 - Run your final cut-off payroll

Your final cut-off payroll is signified by the end of the financial year date that is set in your system. Once you have processed a pay run with this date as a week-ending date, you will not be able to process any further payrolls in the current financial year. Any payrolls processed with a week ending date post your current end of financial year date will be considered a new financial year payroll. 

Before running this final cut-off of the payroll, please ensure all adjustments that are required have been included in this, or a previous, payroll.

Final Date that all pay runs need to be completed by is - 30 June 23

Step 5 - Send your final STP

We recommend that you do not send your final STP immediately after the final cut-off payroll is processed.  The final STP can be submitted at any time prior to changing your financial year dates.

Please ensure that your final STP is at completed status prior to changing your financial year dates.

It is recommended that you reconcile your final payroll with your final GL ( using the same procedure as above ) and ensure that you are completely happy that your final Payroll Summary and your General Ledger match.  Remember, you would have reconciled to the end of May so you will only need to ensure that the month of June is correct.  Once all is correct and you are satisfied that your payroll for FY23 is complete, go ahead and submit your final STP

For those of you who are using branches, please ensure that you do not submit a final STP for any branch until you are satisfied that all branches are complete and correct.

Please also ensure that your final STP for all branches are at completed status before proceeding to change your financial year and superannuation cut-off dates for any branches.

Step 6 - Finalize your payroll tax

Before setting up your financial year, please finalise your payroll tax by reviewing the report

Step 7 - Set up your new financial year

To start a new financial year, you will need to set your start and end dates, as well as your new Superannuation, cut-off dates.

Please note:  All of the above must be done prior to processing any payroll in the new financial year

Step 8 - Change in Superannuation Percentage

Entire Software is aware that the super % will be increasing from 10.5% to 11% from the July 1, 2023.

Link for reference: Super guarantee percentage | Australian Taxation Office (ato.gov.au)

As always, we are here to help so if our assistance is required, please contact us as soon as possible as this will be a very busy period for all of us.