EOFY Reconciliation Guide

 

End of Financial Year – STP to Payroll Activity Reconciliation

An important part of the EOFY process is reconciling the STP YTD report to the Advanced Payroll Activity.

Prior to balancing both reports, you will need to ensure all payroll for the last financial year has been processed and STP batches have been submitted.

The STP YTD and Advanced Payroll Activity can be accessed from the Financial Report Centre by navigating to Reports > Financial.

 

When generating each report, select the date range for the full last financial year and ensure the ‘Cash Basis’ and ‘Separate Superannuation Contribution Types’ checkbox options are selected on the Advanced Payroll Activity. Grouping by employee may make it easier to identify the relevant staff member to investigate.

mceclip1.png

Reconcile: Gross payments

Step 1:   Finalise last Financial Year

Total on STP YTD = Gross Wages on Advanced Payroll Activity by adding up the below categories.

In order to reconcile gross payments, the following totals on the STP YTD report should balance to gross wages on the Advanced Payroll Activity: 

  • Individual Non-Business
  • Gross Labour Hire
  • Gross Working Holiday Maker
  • Gross< Foreign Income
  • Gross Lump Sum Payment A
  • Lump Sum Payment B
  • Lump Sum Payment E
  • ETP Code O – Taxable
  • ETP Code R – Taxable
  • ETP Code S – Taxable
  • ETP Code P – Taxable
  • ETP Code D – Taxable
  • ETP Code B – Taxable
  • ETP Code N – Taxable
  • ETP Code T – Taxable
  • Allowance Transport
  • Allowance Car
  • Allowance Laundry
  • Allowance Meals
  • Allowance Travel
  • Allowance Other
  • JobKeeper Payment

Only select taxable Pay Items/Allowances set to report as gross payments or an allowance

Reconcile: PAYG withholding

Similarly, the PAYG Withholding on the Advanced Payroll Activity should correspond with the combined totals of the following columns from the STP YTD report

  • Individual Non-Business PAYGW
  • Labour Hire PAYGW
  • Working Holiday Maker PAYGW
  • Foreign Employment Foreign Tax Paid
  • Foreign Employment PAYGW
  • ETP Code O - PAYG
  • ETP Code R – PAYG
  • ETP Code S – PAYG
  • ETP Code P – PAYG
  • ETP Code D – PAYG
  • ETP Code B – PAYG
  • ETP Code N – PAYG
  • ETP Code T – PAYG
Reconcile: Reportable employer super

Reportable Employer Super (STP YTD report)= Total of Super Contribution (Advanced Payroll report) + Employer Additional Super Contribution(Advanced Payroll report)*

The Reportable Employer Super Contribution on the STP YTD should balance to the total of the Super Contribution and Employer Additional Super Contribution (*if set up as RESC) on the Advanced Payroll Activity.

Allowances

Allowances do not need to be reconciled as they are considered within your gross reconciliation.

However it is good practice to ensure your allowances are reporting as intended and can be balanced in most cases using the below formula.

Reportable Allowances (STP YTD report) - Non taxable allowances (STP YTD report)= Total Allowances (Advanced Payroll Activity report)

Allowances are reported as follows:

STP YTD: Allowance types are displayed on the STP YTD include taxable and non-taxable allowances.

Advanced Payroll Activity: All allowances are displayed, including those set to not be reported for STP purposes. Allowances are separated into taxable and non-taxable allowance columns. An allowance may be set up to report separately as an allowance or as part of gross payments.

Refer to your Pay Item and Allowance schedule for a breakdown of all your current pay items and allowances in your foundU platform. From here you can work out which allowances are included reported separately or in gross.

 

 Balance Allowances

To balance the allowances, remove those configured to be non STP reportable from the taxable allowances total on the Advanced Payroll Activity.

The STP YTD report displays each allowance types separately, the non- reportable allowances should be subtracted from the respective allowance type total. This figure should reconcile with the total of taxable and non-taxable allowances reported on the Advanced Payroll Activity.

Troubleshooting discrepancies

To assist in reconciling your STP YTD report with your Advanced Payroll Activity report, you may find it helpful to use the STP Line Item report to investigate individual employee discrepancies further

Was this article helpful?
7 out of 7 found this helpful