EOFY TO DOS: How to prepare an employee payment summary

StuartBusiness Technology, Cloud Accounting, General, Tax

Under pay as you go (PAYG) withholding, you must give each of your employees a payment summary showing the payments you have made to them and the amounts you withheld from those payments during a financial year.

Preparing your employee payment summaries in Xero

If you’re on Xero, providing your employees with their payment summaries and submitting them to the ATO has never been easier!

From anytime after 30 June you can prepare your employee payment summaries. You must send to your employees by 14 July and to the ATO by 14 August.

Check out these 9 simple steps below and you’ll be all set:

  1. Go to Payroll, and then click Employees.
  2. Click Payment Summaries.
  3. Click Confirm and Continue.

Now its time to publish employee payment summaries

  1. Select employees whose payment summaries you want to publish.
  2. Click Publish.

You can now distribute payment summaries to employees.

  1. Select how you would like to distribute payment summaries to employees: My Payroll, Email or Print

My Payroll:

Employees who have My Payroll access will have their payment summary automatically uploaded to their employee portal when it is published. The payment summary will be available for the employee to download from My Payroll. Invite employee to access My Payroll

Email

You can email payment summaries to your employees from Xero. Select employees/select all employees > Send to Employee > Send selected payment summaries to employees via email. The email address that the payment summaries go to are those listed on each employee’s Details tab (in Payroll > Employees). This is the email address you entered when setting up the employee in Xero Payroll.

Print

You can make a printable PDF of employee payment summaries. Select employees/select all employees > Send to Employee > Generate PDF for printing. Employees who have had payment summaries printed or emailed will show an icon under their status column.

  1. Select all employees and click File Now.
  2. Select the Authorisation To File declaration check box.
  3. Click File Now.

The annual report is filed at the ATO if all payment summaries are accepted. If it can’t be filed, you’ll need to fix the relevant payment summaries and submit the file again.

Once you’ve sent the annual report to the ATO, your end of year payroll process is complete. Too easy!

Still not sure?

Check out this clever video tutorial for more information on how to:

  • prepare payroll for the year end
  • generate employment payment summaries to publish to the employee’s secure portal
  • create the EMDUPE file in Xero to submit to the ATO.
  • Lodge the report to the ATO through Xero

Need help finalising year-end for your business?

Click here to arrange an obligation free consultation.

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