As the End of Financial Year (EOFY) approaches, businesses face the challenge of meeting their payroll obligations. Ensuring accuracy and compliance is crucial, and using a robust payroll solution like MYOB Advanced Payroll can make this process stress-free and efficient.  

In this blog post, we will explore how MYOB Advanced Payroll helps streamline payroll obligations, making EOFY preparations stress-free.  

Understanding EOFY Payroll Obligations 

EOFY payroll obligations involve several key tasks: 

Reconciling Pay Deductions and Salary Sacrifice 

Reconciling pay deductions and salary sacrifice involves verifying that the amounts withheld from employees’ pay for items like Union Fees and Superannuation are accurate. This process ensures that these amounts are correctly recorded in the General Ledger (GL) accounts. 

Accurate reconciliation is vital to prevent discrepancies in financial records. It ensures that all withheld amounts are properly accounted for and reduces the risk of errors that could lead to penalties or issues with employee trust. Proper reconciliation helps maintain accurate financial statements and ensures compliance with legal requirements. 

Reporting Fringe Benefits

Reporting fringe benefits involves declaring any additional benefits provided to employees, such as company cars or health insurance, to the Australian Taxation Office (ATO). This includes both taxable and exempt benefits, which need to be accurately classified and reported. 

Accurate reporting of fringe benefits is crucial for compliance with tax regulations. It helps in avoiding potential penalties from the ATO and ensures that employees receive the correct information for their tax returns. Proper reporting also provides transparency in employee compensation, which can improve trust and satisfaction. 

Generating Essential Payroll Reports 

Generating essential payroll reports involves creating detailed documents that summarise payroll activities. Key reports include the Pay GL Batch Details, Superannuation Report, and Payroll Tax Liability Report. These reports provide a comprehensive overview of payroll data. 

Reviewing payroll reports is critical for ensuring the accuracy and completeness of payroll data before EOFY finalisation. These reports help identify any discrepancies or errors in payroll calculations, ensuring that all financial obligations are met accurately. Regular review of these reports supports informed decision-making and strategic planning. 

Finalising Payroll via STP 

Finalising payroll via Single Touch Payroll (STP) means submitting the final payroll data for the financial year to the ATO. This includes a declaration that all payroll information for active and inactive employees is complete and accurate. 

Timely and accurate finalisation of payroll is essential to comply with ATO deadlines, typically by the 14th of July. It ensures that all payroll data is accurately recorded and reported, which is critical for both tax compliance and employee satisfaction. Proper finalisation also facilitates smooth tax return processes for employees and helps avoid late submission penalties. 

Benefits of Using MYOB Advanced Payroll

Automated Compliance 

MYOB Advanced Payroll automates many compliance tasks. This ensures businesses meet ATO requirements without manual intervention. For instance, it automates the calculation and reporting of Superannuation and Fringe Benefits Tax (FBT).

Accurate Reconciliation 

Reconciling deductions and salary sacrifice amounts can be complex. MYOB Advanced Payroll simplifies this with automated reconciliation processes. By tracking General Ledger (GL) accounts and payroll posting classes, businesses can easily ensure all amounts match and are accurate. 

Comprehensive Reporting 

Generate detailed payroll reports effortlessly. Essential reports like Pay GL Batch Details, Superannuation Reports, and Payroll Tax Liability Reports are just a few clicks away. These reports help businesses verify all payroll data before finalisation. 

Simplified STP Finalisation 

MYOB Advanced Payroll streamlines the Single Touch Payroll (STP) finalisation process. Once all payroll data is submitted throughout the year, the finalisation step is quick and straightforward. This ensures businesses meet the EOFY deadline with ease. 

Step-by-Step Guide to Using MYOB Advanced Payroll for EOFY

Reconcile Pay Deductions and Salary Sacrifice 

1. Identify GL accounts used for tracking deductions. 
2. Obtain the GL purpose code and payroll posting class for each pay item. 
3. Run the Pay GL Batch report and compare it with the Trial Balance report. 
4. Ensure all amounts match before finalising payroll. 

Report Fringe Benefits 

1. Set up necessary Pay Item Types for fringe benefits. 
2. Assign pay items to employees based on their reporting requirements. 
3. Create a pay run and add the relevant Reportable Fringe Benefits pay items. 
4. Submit the pay event to the ATO. 

Generate and Review Payroll Reports 

1. Run the Pay GL Batch Details report to check amounts posted against each GL account. 
2. Generate the Superannuation Report to verify withheld amounts. 
3. Use the Payroll Tax Liability Report to meet state-specific reporting obligations. 

Finalise Payroll via STP 

1. Ensure all payroll data for the year is submitted. 
2. Use the STP Finalise form to send a finalisation declaration to the ATO. 
3. Include all active and inactive employees in the final submission. 

Conclusion 

Using a comprehensive payroll solution like MYOB Advanced Payroll can transform EOFY payroll obligations from a stressful task into a streamlined process. Automated compliance, accurate reconciliation, detailed reporting, and simplified STP finalisation ensure that businesses meet their obligations with confidence.  

As EOFY approaches, leveraging these tools will not only save time but also reduce errors and ensure compliance, allowing businesses to focus on growth and success. 

If you need further assistance with your EOFY payroll obligations or would like to conduct an audit on how you can further improve your EOFY processes, don’t hesitate to reach out and book a time with our MYOB expert consultants here at AlphaBiz Solutions. We are here to help you streamline your processes and ensure a smooth end to your financial year.