End of Financial Year Guide. Employment Hero

Transcription

1 End of Financial Year Guide Employment Hero

2 Table of Contents. 1. Preparation Before Generating Payment Summaries 3 2. Payment Summary Generation 3 3. New Financial Year 5 Award Updates and Pay Increases 5 Single Touch Payroll 13 Tax Table Updates 15 Superannuation Updates 15 Employment Hero End of Financial Year Guide Page 2

3 This article will guide you through the process of wrapping up the end of financial year, producing your PAYG Payment Summaries (group certificates) and then getting ready for the next financial year. 1. Preparation Before Generating Payment Summaries Before generating Payment Summaries, ensure all setting related to your pay categories, deduction categories which may be recorded on Payment Summaries are correct. Also, you need to ensure all payruns in the financial year have been finalised. For more details on preparation before generating payment summaries, refer to our Payment Summary Guide. 2. Payment Summary Generation Ready to proceed? 1. Once you have completed the steps above, you will be ready to publish employee payment summaries. Please refer to the steps in Payment Summary Guideline to produce the payment summaries and then continue here. 2. Once your payment summaries are generated and published, you will want to submit your payment summaries to the ATO. You can lodge payment summaries either by: 1. Generating an EMPDUPE file. 2. Lodge via SBR. 3. Once you publish the payment summaries, they become available to the employees for download via the self-service portal. If you use HeroPay payroll platform only, if you would like to send the employees an notification to let them know that their payment summaries are generated, click the 'Send Notifications' button. If you use Employment Hero HR platform and have turned on Payment Summary Employment Hero End of Financial Year Guide Page 3

4 function under Customisation Menu, once payment summaries are published on payroll platform, employees will be notified through notifications and mobile push notifications. More information on the Payment Summary on HR platform can be found here. Note: For detailed procedure on how to Generate Payment Summary, please refer to Payment Summary Guide. Employers who report and finalise employee payments (and amounts withheld from them) throughout the year in line with Single Touch Payroll reporting requirements, will not need to provide corresponding payment summaries to employees nor a payment summary annual report to the ATO. Employment Hero End of Financial Year Guide Page 4

5 3. New Financial Year There are several considerations for the new financial year: 3.1 Award Updates and Pay Increases Award Updates As with each year, Fair Work Australia will conduct an annual wage review which often means an increase to base rates for employees paid under a Modern Award. For customers using the pre-built Industry Awards, new versions of these Award packages will be published on 1/7/2018 with the applicable rate changes included. Once you have wrapped up the FY 2017/2018 financial year and are ready to start processing pays in the new financial year, there will be an action item on your dashboard like this notification below: Click the 'Apply Updates' link and follow the prompts to update your award. Employment Hero End of Financial Year Guide Page 5

6 Update Rule Sets - Yes to update any new pay condition rules related to the award Preserve Custom Rules - Yes to keep the custom rules that have been created for your org Preserve Disabled Rules - Yes to keep the rules that have been disabled for your org Update Pay Rates - Yes to update any new pay rates related to the award Once you select Yes or No for above options and click Install, the update will be applied. Please note after that, rule set period will be reverted to original setting of the award (e.g rule set period originally under award is 4 Weekly, but for your org rule set period is customized as Weekly. After you updated award on payroll platform, rule set period will be reverted to 4 Weekly). Note: Remember to check below after updates Check the rule set period and change it to period applicable for your org Check if custom and/or disabled rules are in correct order Lastly, if you use Employment Hero HR Platform, refer to this link for instruction to update information from Payroll Platform to HR Platform. Employment Hero End of Financial Year Guide Page 6

7 Pay Increases If you do not have an award installed, you can follow below steps to update pay increases/ annual salary review for employees in bulk Click on the Payroll Settings tab, then choose Pay Rate Templates under the Pay Conditions heading: This will show you a list of the existing Pay Rate Templates and will display the number of employees that are linked to that template. Employment Hero End of Financial Year Guide Page 7

8 You have two options to update existing pay rate templates: edit individual pay rate template or use export/import function. More details can be found below. Employment Hero End of Financial Year Guide Page 8

9 Edit individual pay rate template Either click on a template to edit it (change the old hourly rate to new hourly rate), or click Add to create a new template The pay rates that are not applicable to this template may be disabled as you can see in the screenshot above, we have disabled the Available for duty allowance pay category. Employment Hero End of Financial Year Guide Page 9

10 Additionally, if you update the rates in a Pay Rate Templates that is linked to employees, you will be able to automatically update the rates for those employees Use Export/Import function On the same page where all pay rate templates are listed, click Export button and follow the prompts. All existing pay rate template will be downloaded in csv file. Open csv file, refer the pay rate templates that you want to update (in second column) and primary pay category (in third column). Then find the primary pay category and update the rate under that pay category. Note: Linked pay categories to the primary pay category (e.g. Primary Pay category: Permanent Ordinary Hour, Linked Pay category: Permanent Overtime, Permanent Public Holiday) will show as 0 (Nil) in the report. Do not update the rate of linked pay categories. When you update rate for primary pay category, rate for linked pay categories will be calculated automatically. You can also update rate for other pay category, which is not a linked pay category (i.e. it does not show as 0 in the report). For example, if rate for Car Allowance you can find the pay category Car Allowance and update its rate. After updating and saving the csv file, go back to Payroll / Payroll Settings/ Pay Rate Templates amd click Import button. Employment Hero End of Financial Year Guide Page 10

11 Click Select File button and Option Update employee pay rates (This option will automatically update rate for employees who are linked to a pay rate template), choose your file and click Confirm Upload. If you use HeroPay only If you need to link a newly created pay rate template to an employee, follow below step Once Pay Rate Templates are set up, they may be applied to both new employees (via the employee wizard) Employment Hero End of Financial Year Guide Page 11

12 ..or existing employees (via the Pay Run Defaults or Pay Rates pages in the employee settings). Once a Pay Rate Template is selected, the rate and primary pay category for that employee are assigned automatically. If you use Employment Hero & HeroPay After updating pay rate templates on HeroPay, refer to this link for instruction to update information from Payroll Platform to HR Platform. Once updates from Payroll to HR are completed, you would be able to assign new pay rate templates to employees OR rate for employees who are linked to an existing pay rate template will be updated. Employment Hero End of Financial Year Guide Page 12

13 3.2 Single Touch Payroll Single Touch Payroll is the next step in streamlining your payroll reporting. It will change the way you report your employees payroll information to the ATO. It starts from 1 July 2018 for employers with 20 or more employees. You will report payments such as salaries and wages, pay as you go (PAYG) withholding and super information to the ATO when you pay your employees. When do I need to get ready? If you have 20 or more employees, you will need to report through Single Touch Payroll from 1 July The first year will be a transition period and penalties may not apply. If you have 19 or less employees, you will need to report through Single Touch Payroll from 1 July 2019, subject to legislation being passed in parliament. What does it mean? When you start reporting through Single Touch Payroll you will send your employees payroll and super information to the ATO from your payroll solution each payday. Your payroll cycle will not change. You can still pay your employees weekly, fortnightly or monthly. Your payment due date for PAYG withholding and super contributions will not change. However, you can choose to pay earlier. You may not need to provide your employees with a payment summary at the end of financial year for certain payments you report through Single Touch Payroll. The ATO will make that information available to employees through mygov You will have the option to invite your employees to complete Tax file number declaration, Superannuation standard choice form and Withholding declaration online. This feature will not be available immediately. When you report to the ATO through Single Touch Payroll, your employees will be able to view their year to date tax and super information through mygov. How do I get ready? Count the employees who are on your payroll on 1 April Employment Hero End of Financial Year Guide Page 13

14 If you have 20 or more, you will need to update your software when it s ready and start Single Touch Payroll reporting from 1 July The headcount is a self-assessment. You do not need to notify the ATO of your employee numbers. How to count your employees? To find out if you are required to report through Single Touch Payroll you will need to do a headcount of the number of employees you have on 1 April If you have 20 or more employees on that date, you will need to start reporting to the ATO through a Single Touch Payroll-enabled solution from 1 July 2018 You need to include the following employees in your headcount: full time employees part time employees casual employees and seasonal workers who are on your payroll on 1 April and worked any time during March. There are exemptions to counting seasonal workers who were employed for a short-time only employees based overseas any employee absent or on leave (paid or unpaid) Do not include any employees who ceased work before 1 April, casual employees who did not work in March, independent contractors, staff provided by a third-party labour hire organisation, company directors, office holders or religious practitioners. More details about Single Touch Payroll on Employment Hero Payroll can be found here. Employment Hero End of Financial Year Guide Page 14

15 3.3 Tax Table Updates The tax tables for the new financial year are automatically loaded (and have been done so already). Please note that any pay runs with a date paid of 1/7/2018 or later will use the FY2018/2019 tax tables automatically. Here is a link to the ATO web page with all of the details Superannuation Updates The Superannuation Guarantee Contribution (SGC) percentage does not change for this financial year. It remains at 9.5%. The Maximum Quarterly Contribution Base will increase from $52,760 to $54,030. This setting will be automatically applied to all employees who are currently on the default contributions base on 1/7/2018. Employees that aren't on the default setting will not be updated so you will need to do this manually. The concessional contributions cap remains at $25,000 for all age groups. Any employee who have recurring salary sacrifice deductions paid to a super fund should be reviewed in light of this. Employment Hero End of Financial Year Guide Page 15