2017/2018 EOFY preparation Tips

Why you WON’T be pulling your hair out this EOY:

As end of year is fast approaching, the team here at Silverdrop are busy preparing. We know it can be an intense time and to make it a little easier, we have collated some tips that might make it more manageable.

First things first, we know that not all chris21 users in Australia are based in the same region, so for companies with multi-country databases, it’s important to prepare for the different end of the year intervals such as:

  • • New Zealand – NZ – 1st of April to 31st of March
  • • Australia – AUS – 1st of July to 30th of June
  • • Papua New Guinea – PNG – 1st of January to 31st of December

We also find that different countries will use different Payment summary templates.
Below are a few key areas that we find most often need attention when we visit clients during end of year. If you address these now, it will save you time in June.

The items we have selected to highlight are often forgotten and need a little attention before starting the EOY process. For other ideas about EOY preparation, feel free to contact us

Payment Summary Alignment GCA

  • Payment Summary Alignment GCA form is configured differently for each country. Tax Certificates configuration applies to Fiji, Papua New Guinea and New Zealand and Payment Summary Files to all the rest countries.

  • Backpay Previous Financial Year
    There is one row for backpay payments that were more than 12 months old at time of payment. This is Lump Sum TLSE and goes in row 4 of the Lump Sum area.
    The actual row specified for TLSE is irrelevant. The Lump Sum Category for the component as defined on Allowance Other (PAE) controls the row into which the component is placed.
  • Extra Tax
    There is one row for tax. You must itemise the deduction code ETAX for extra tax on Payment Summary Alignment (GCA) as the Payment Summary List (GCL) report will not print it. You position ETAX in row 1.
  • Reportable Super
    Confirm all staff super reportable codes are configured on GCA form.

Foreign Employment Income (FED)

  • Periods of overseas employment may constitute foreign employment and require a Foreign Employment Income (FED) entry, unless it is Exempt Foreign Income.
  • A new entry is required each time a staff member commences a new period of foreign employment.
  • The Payment Summary File (GCF) process uses the Foreign Employment Income entry when creating an ATO EMPDUPE file and a Foreign Employment Income Payment Summary for a staff member.
  • The Payment Summary File process consolidates data accordingly for output to the Foreign Employment payment summary.

ETP – Employment Termination Payments

  • Review Employment Termination Payments – ETPs manually added or a record automatically created by Termination Update (TPU) processing.
  • The Payment Summary File (GCF) or Tax Certificates (GCS) report produces ETP certificates at the end of the financial year using the ETP Details entries.
  • Ensure the ETPs are correctly flagged in the ATO ETP Codes. All ETPs with Payment Summary Process Date field blank will be processed.

Year End Reconciliation – Do a trial run now and reconcile every month to save you many hours at year end.

  • YTDRECON report
    Run the YTDRECON report to compare the Pay History(PHQ) to Pay by Period(PYP) form (they should be the same especially taxable and tax).
  • Correct where necessary prior to updating last pay and closing off final month end.
  • Run Reconciliation Report – EAR
    Use the Component Reconciliation (EAR) report as part of your reconciliation process.
  • The Component Reconciliation (EAR) report compares discrepancies between values accumulated for Component YTD (YTV) components and those values accumulated for Year-to-Date and Alternate Year-to-Date values on Pay by Period (PYP) form.
  • Any flag which may have been changed during the year and has affected taxable salary and tax will be reported as discrepancy.
  • A tax value appears on Pay by Period (PYP) but not on Component YTD (YTV), so the tax value is not compared in this report. If gross is incorrect, the tax value and net values may also be incorrectly calculated.
  • To correct discrepancies identified run an adjustment run or correct on Component YTD (YTV) form and then re-run Component Reconciliation (EAR) report.
  • Always run this report twice, once in non-update mode “Update Bank Details Files” not selected and the second time selected. This will update values on PYP form.

FBT Grossed up values– Enter it in April or whenever available

  • This can be entered into the PYT form. This can be done via excel spreadsheet using the LFB form which only requires two columns on a spreadsheet or can be loaded via the GTR process or it may be entered manually.
  • The beauty of the LFB process is that the amount entered adds to the amount that is already in the field on PYT, whereas the GTR update will replace the value fully.
  • Ensure you have cleared values in the field prior to loading it.
    Make sure these are the Grossed up Values!

In Summary:

  • We recommend all clients start reviewing their system setup as per the above. Do it now while there you are waiting for STP and anything else that will arise in June.
  • If making these changes in the TEST environment, remember to fix the PROD settings at the same time.

Bonus TIP!

  • After running GCU at EOFY (before running CLR), always run a report designer report that will check which employees have received a certificate number applied to them. Cross reference this with PYP. Any employee who has YTD values in PYP but does not have a certificate number in PYT, will not be included in the clear down.
  • Therefore, this can be a double benefit:
  1. To locate anyone who has values that needs a certificate (for these, you need to run the payment summary process again).
  2. For those that don’t have a certificate number, you can manually add a number to the field, so they are picked up in the clear down (you may use anything such as 9999, it doesn’t have to be unique and it will disappear after the clear down)


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