Payroll Reconciliation & Finalise STP Authority

IF USING RECKON ACCOUNTS INTEGRATED PAYROLL SYSTEM - PLEASE READ CAREFULLY AS THE FINALISATION INSTRUCTIONS HAVE CHANGED.

A. Reconciling Payroll Expenses (Salary & Wages) and Superannuation Expense – THIS CAN ONLY BE DONE ONCE THE BANK RECONCILIATION HAS BEEN FINALISED

Generate Payroll Summary Report – [by Total]

• From the Reports menu on the toolbar, select Employees & Payroll; select Payroll Summary;
  
  
• Select Modify Report (if it hasn't already opened automatically); on the Display tab
  
  
  • ensure the Report Date Range is set to Last Payroll Year (but if payroll year is not over, choose This Payroll Year instead);
  • under the Columns section, select “Display Columns by” Total Only (scrolling to the top, it is the first item on the list)
  • then untick both Hours and Rate boxes
  • then click OK.

Generate Profit & Loss

• From the Reports menu on the toolbar, select Company & Financial; select Profit & Loss Standard;
  
  
• Select Modify Report (if it hasn't already opened automatically); on the Display tab
  
  
  • ensure the Report Date Range is set to Last Financial Year (but if financial year is not over, choose This Financial Year instead);
    
    
  • ensure “Report basis” is set on “Accrual”
    
    
  • click OK.
    
    
• Compare these 2 reports to ensure that salaries & wages (which should be a sub-category of Employee benefits expense) on the P & L report, matches to the Adjusted Gross Pay on the Payroll Summary Report [By Total].  The only discrepancy that should exist is IF your Payroll Summary Report includes payroll items such as deductions and reimbursements. These amounts (which you should already be aware of), will not be included in your P&L report.  If there are further discrepancies that you are unsure of, please contact our office.
  
  

B. Reconciling Gross Wages and PAYG Entered in Reckon Accounts to W1 And W2 Reported to The ATO_Generate Payroll Summary Report [by Month/Quarter]

1. Using the Payroll Summary Report by total generated in A above, select Modify Report. On the Display tab select Display Columns by Month/Quarter, depending on whether you report on a monthly or quarterly basis. If you report monthly, you will need to select Month; click OK.
   
   
2. Click here to download the Bove Payroll Reconciliation spreadsheet.  There are 2 example worksheets for you to follow (one Example for monthly IAS reporting and the other Example for quarterly BAS reporting). These begin with the words “Example-...”.
   
   
3. To prepare the reconciliations, you will need to use one of the following tabs:
   
   
   • Monthly Payroll Reconciliation (if you lodge monthly IAS/BAS);
   • Quarterly Payroll Reconciliation (if you lodge quarterly BAS only).

You will need to have a copy of all your IAS/BAS statements or these can be reviewed on your ATO portal.  Now enter the W1 figure and W2 figures (from the BAS/IAS) under the columns headed: -

• Reported to ATO W1; and
• Reported to ATO W2

Using the Payroll Summary Report [By month/quarter] you were asked to generate in 2.5 B 1. above enter as follows:

• The figures from the row named “Adjusted Gross Pay” to the "Actual Reckon W1" on the spreadsheet.  Please note however, if your payroll summary report shows an account called “Reimbursed/Reimbursable Expenses”, this figure must be subtracted from the “Adjusted Gross Pay” figure before entering the spreadsheet; and
  
  
• The figures from the row named “PAYG Tax” to the "Actual Reckon W2" on the spreadsheet. Please note that these amounts need to be entered as a positive figure even though the reports show them as a negative.
  
  
• When finalising the Bove Payroll Reconciliation and you find you have a discrepancy (of more than $1 for any given month/quarter), unless it relates to the month of June, you will either need to: -
  
  
  • Add/subtract the discrepancy to the June BAS;
  • Amend the IAS/BAS, the discrepancy related to; or
  • Contact our office

C. Reconciling Payroll Liability   (IMPORTANT:  DO NOT ignore this section)

Reconcile PAYG Withholding Liability and Superannuation Payable Liability Accounts to 30 June 2024.  If you are unsure as to how to do this, please contact our office for further instructions.

D. FINAL STP for the 23/24 Financial Year which satisfies Payroll PAYG Withholding Obligations (with the Australian Taxation Office)

Single Touch Payroll (“STP”)

N.B. if you have had any employee/s leave throughout the financial year, ensure that a “Release Date” has been entered in their Employee record prior to lodging the “Finalise Year” STP.

In Reckon Account Hosted 2024, once you have completed your final pay for the 23/24 financial year and lodged STP as you usually do.  [Please note: The final pay must be paid on or before 30 June 2024 i.e. if the pay period ends 30 June but is not paid until 1 July 2024, then it will be part of the next financial year].  The final step is to lodge STP using the "Finalise Year" option to lodge and Export.  Ensure the year is set to 2023-2024.



Last final check to be done: Before lodging the finalise STP on the Reckon GovConnect portal:

1. Using the Payroll Summary Report generated in A above, Click on the Display tab and this time change the “Display columns by” Employee and export to excel to help with reconciling procedures.

2. Then perform the Finalise STP procedure (at this stage, you will perform your final check before submitting)

• In Reckon Accounts Hosted Go to Employees on the tool bar -> Process Single Touch Payroll -> Change “Pay Event” to Finalise Year -> ensure the year is 2023/2024 -> click “Select All” and “Export”.
• Log into Reckon GovConnect as usually done but when you click on “Upload” choose the second radio button “Update a previously completed ATO submission or Finalise Year” and “Confirm”.  Then save the json file as you normally do.
• BEFORE SUBMITTING however, click on Detail.  A list of all employees with their payroll details will be displayed.  To keep a copy of this information for your records press CTRL P, click on the Preferences button (click only once, it may take a little time to respond); then change orientation to Landscape (or it won’t print correctly), click OK and then click Print and download to your computer or print a hard copy (whatever you prefer).
• This report can be checked off with your employee payroll summary by employee generated in 1 above, which you should have exported to excel as mentioned in 1 above.

3. If the amounts don’t match, it may be that the payroll items haven’t been allocated to the correct Tax Tracking field (introduced by STP2) e.g. Ordinary pay payroll items to Gross Payments or Leave payroll items to Leave – Other paid leave (O) etc.  If you are having issues, you can contact our office for assistance.  Once you have rectified the issues, you will need to redo Step 1. Above and you will need to resave/reprint both of the reports mentioned in 1. above to our office for reconciliation purposes verification.

4. Once you are satisfied that all is correct, click on Submit to finalise STP

For more information on STP finalisation reporting click here

IMPORTANT:  If you lodge via STP and have followed the above STP processes, you are no longer required to lodge the Empdupe file with the ATO.