Steps to undertake before reconciling
- Ensure all pay runs within the financial year have been posted
- Check payment dates of pay runs
- Ensure all wages payments have been processed through your bank account and in Xero
Review your payroll data with the general ledger for any errors before generating your employee’s payment summaries
- Run the Payroll Activity Summary report and make sure you select all employees and the financial year you’re checking.
- Run the General Ledger Report, select the financial year and sort by Account Name. Both the Cash Basis and Show YTD fields should be unticked.
- Use the following table to check your payroll data by matching the report balances in your Payroll Activity Summary report and the General Ledger Report.
| Matching report balances | ||
| In your Payroll Activity Summary | In your General Ledger Summary | |
| Total Earnings | should match | Total Wages and Salaries |
| Total Super | should match | Total Superannuation |
| Total Tax | should match | Total PAYG Withholding Payable movement for the year |
Prepare Individual Payment Summaries
- Verify payroll data matches the general lodger
- Go to payroll, click Employees, then Payment Summaries
- Review organisation name, ABN and postal address and change organisation settings if needed
- Enter signatory name and contact number
- (Optional) under FBT Exemption, select a checkbox if you want to enter exempt and non-exempt reportable fringe benefit taxes for each employee.
- Click confirm and continue
- Click Financial Year Ending
- Review all payments and amounts
- Identify and fix any errors
- Enter any RFBA amounts from your fringe benefits tax return for each employee
- Enter any Lump Sum amounts
- Select checkboxes next to all employees
- Click publish
- Review the Status column for all employees in the payment summary table:
- The tick icon shows the payment summary is published and ready to submit to the ATO.
- The clock icon shows employees with unpublished payment summaries. Identify and fix payment summary errors, then republish.
- Send a payment summary to each of your employees by email using My Payroll, or as a printed PDF.
- Submit payment summary report to the ATO.
Please note:
If you haven’t already attended the webinar on “processing end of financial year payroll”, a copy of this webinar should be on Xero U www.xero.com.au/au/training by next week. This webinar will take you through the process step-by-step
