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 report.

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 reports 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.

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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 with Gross Wages on the Advanced Payroll Activity report: 

Please note, this will include some Taxable and Tax-Free amounts for ETP Codes.

  • 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 – Tax- Free
  • ETP Code O – Taxable
  • ETP Code R – Tax-Free
  • ETP Code R – Taxable
  • ETP Code S – Tax-Free
  • ETP Code S – Taxable
  • ETP Code P – Tax-Free
  • ETP Code P – Taxable
  • ETP Code D – Tax-Free
  • ETP Code D – Taxable
  • ETP Code B – Tax_Free
  • ETP Code B – Taxable
  • ETP Code N – Tax_Free
  • ETP Code N – Taxable
  • ETP Code T – Tax_Free
  • ETP Code T – Taxable
  • Allowance Transport
  • Allowance Car
  • Allowance Laundry
  • Allowance Meals
  • Allowance Travel
  • Allowance Other
  • JobKeeper Payment

Non-taxable pay items and allowances are not included.

Reconcile: PAYG withholding

Similarly, the PAYG Withholding on the Advanced Payroll Activity report 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: Super

  Super Liability Amount (STP YTD) = Super Guarantee (APAR)  

The Super Liability amount on the STP YTD should balance with the Super Guarantee amount on the Advanced Payroll Activity report.

  Reportable Employer Super Contribution (STP YTD) = (APAR) Employer Super Contribution + Salary Sacrifice  

The Reportable Employer Super Contribution on the STP YTD should balance with the total of the Employer Additional Super Contribution and Salary Sacrifice amounts on the Advanced Payroll Activity report.

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 including 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 type 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.

Once you have drilled down to the employee/s causing the discrepancies, please read below for some handy tips to help troubleshoot the discrepancies. 

Handy hints to help troubleshoot discrepancies

  • If you find that the total amount on the Advance Payroll Activity report is higher than the total amount on the STP YTD report, an STP batch may not have been submitted

    In this case, confirm that the YTD for your employee/s is correct in the Advanced Payroll Activity report.

    If so, and the YTD in the Advanced Payroll Activity report is correct, please contact us at help@foundu.com.au for assistance in correcting the STP YTD discrepancy. 

    If not, you will need to make the relevant changes required to the employee/s payslips and correct them. Then submit the updated STP packet/s to correct the STP YTD figures. Once all STP batches have been submitted check that the STP YTD figures are now correct. 

  • If you find that the total amount on the STP YTD report is higher than the total amount on the Advance Payroll Activity report, additional STP batches may not have been submitted i.e. STP batches generated from edits or adjustments to payslips may have been missed. 

    In this case, confirm that the YTD and Office Code for your employee/s is correct in the Advanced Payroll Activity report and please contact us at help@foundu.com.au for assistance in correcting the STP YTD discrepancy. 
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