How to generate PAYG payment summaries - MYOB Essentials Accounting - MYOB Help Centre
Exclusively in Australia
Reporting of Payroll with a Single Touch
You will no longer need to prepare payment summaries if you use Single Touch Payroll to report payroll information to the ATO. Instead, you will need to finalize the information regarding your payroll. Following this, the payroll information pertaining to your employees will be accessible to them through the online service provided by the government, known as MyGov.
You are able to produce PAYG payment summaries for your employees and lodge the payment summary annual report (EMPDUPE file) with the ATO even if you have not been reporting your payroll information to the ATO via the Single Touch Payroll reporting system. This is the case even if you have not been using the Single Touch Payroll reporting system.
This discussion will walk you through the procedure, step by step.
Also become familiar with the processes of reprinting and modifying a payment summary.
Your payment summaries will be generated at the PAYG Payment Summary Centre. To access it, select PAYG payment summaries from the Payroll menu on the site's navigation bar.
Cannot locate the option to view the PAYG payment summaries. You are most likely utilizing the most recent version of MYOB Essentials, which does not include this function any longer. Instead, you will use Single Touch Payroll to complete the processing of your payroll information.
Begin by selecting the fiscal year and the employees whose payment summaries you will be preparing for, then move on to the next step.
There are three tasks to finish under the Payment summary heading. Let's go through each of them one by one, shall we?
When you click the Enter payment summary info button, you'll see 5 steps that need to be completed for each employee whose payment summaries you're preparing. Using these steps, you will be able to enter or verify the information regarding each employee, including the payments they have received throughout the fiscal year.
Let's get started
Fill in the employee's personal information, including their Tax Identification Number (TIN).
If you have already entered their address into MYOB Essentials, you may need to reformat it in order to conform to the specifications set forth by the ATO.
When you are finished, click the Next button.
Pick the kind of payment summary you want and the range of dates it includes.
It is important to keep in mind that you should only generate an amendment if you need to make changes to a payment summary that you have already submitted to the ATO. If you are making modifications to a payment summary that you haven't lodged yet, you should select the option that says "No, this is a new PAYG summary."
Time spent on the job by the employee
Choose the option "Yes" if the employee worked for you throughout the entire reporting period. Choose "No" if they were only employed by you for a portion of the year, and then specify the dates for which they were on the payroll.
When you are finished, click the Next button.
Put each of the employee's earnings and deductions that were paid to them throughout the course of the fiscal year into one of the following categories. As a result, you can rest assured that they will be included in the appropriate section of the PAYG payment summary.
Earnings can be placed into one of three categories, depending on the nature of the allowance or the reason for the payment.
- Amounts that are counted toward an employee's total gross pay and are deducted from that pay before taxes are taken out. Allowances paid for working conditions, special qualifications, or extended hours, or to cover expenses that aren't tax deductible, such as transportation between work and home, are included here. This includes salary, wages, bonuses and commissions, personal leave pay, and allowances paid for working conditions, special qualifications, or extended hours. If you've made any of these payments using an allowance, you need to make sure that the allowance is accounted for as gross income. You may have, for instance, allotted a certain amount in MYOB Essentials for the purpose of paying commissions. Because commissions are not considered to be allowances for the purposes of taxation, but do need to be included in the employee's gross pay, you should assign this allowance to the Gross pay category.
- Allowances are amounts paid to employees in addition to their regular pay in order to reimburse them for costs directly related to their jobs. This includes reimbursements for travel, uniforms, and tools, as well as reimbursements for motor vehicle expenses and payments made on a per-kilometer basis for car expenses.
- Amounts that do not have to be included in the PAYG payment summary that are designated as "Exclude." Allowances for ancillary benefits, such as a living-away-from-home allowance, could fall under this category.
Depending on the kind of deduction you have, you can put it into one of these four categories:
- Employer super refers to reportable superannuation contributions made by employers. These contributions can include salary sacrifice amounts, additional payments to superannuation, or additional contributions above and beyond the mandatory level. Take note that this does not include the typical contributions made by employees or employers to their superannuation accounts. Gain a better understanding of the Reportable Employer Super Contributions.
- The term "union fee" refers to the money that is taken out of an employee's paycheck to pay for union, association, or professional fees.
- Donations made in the workplace that are eligible for a tax deduction and that have been authorized by an employee to be made to recognized charities or organizations that are qualified to receive such donations are known as "workplace giving."
- Those amounts that are exempt from being included in the PAYG payment summary are designated as "excluded." This includes some deductions that are requested by the employee on a voluntary basis, such as membership dues to social clubs or cafeteria plans.
Visit the website of the ATO for more information about how to appropriately categorize individual earnings and deductions.
Click the Next button once you have finished allocating your earnings and deductions.
This step lists all of the earnings and deductions that are included in each category (the parts of the payment summary, such as Gross payments and Total allowances, etc.). For example, this step may list gross payments and total allowances. ) Verify that these have been given the appropriate names.
Overrides If you want to enter amounts that are different from the calculated values, you can do so in the overrides fields. g if you already had a payroll system in place before you began using MYOB Essentials
You can change the category an earning or deduction is assigned to by going back to step 3 (click Edit assignments) and assigning it in a different way. If the category an earning or deduction is assigned to is incorrect, you can change it.
Please take into consideration that any earnings or deductions that have been assigned to the Exclude category will not appear here. On display are only those categories that will be included on the final payment summary.
When you are finished, click the Next button.
Include any additional income that was paid to the employee that was not tracked by MYOB Essentials on their payment summary by entering it in this step. Doing so will ensure that it is properly accounted for. Visit the website of the ATO for further details regarding these classifications.
Do you need to report payments made to the ETP?
The ETP component cannot be reported in the EMPDUPE file using Essentials because it lacks the capability to do so. You are responsible for completing a separate payment summary form, which can be obtained from the ATO, and delivering it to your employee.
You will still need to electronically lodge the EMPDUPE file, and you will need to send the ETP form to the ATO in a separate mailing.
Input the following amounts, making sure to use whole dollars:
- Payments from Community Development Employment Projects (CDEP) are the total amount of a CDEP wages grant that you have paid to an employee.
- Reportable fringe benefits are defined as the total cost of the employee's taxable benefits after they have been grossed up. Take note that employees are only required to report fringe benefits if the total taxable value of those benefits is greater than the threshold established by the ATO.
If you have indicated in your payroll settings that your company is subject to Section 57A of the Fringe Benefits Tax Assessment Act of 1986, then you will see two fields: Reportable fringe benefits (non-exempt)—The grossed-up value of reportable fringe benefits that are not exempt by section 57A; and Grossed-up value of reportable fringe benefits that are exempt by section 57A. Grossed-up value of reportable fringe benefits that are exempt from section 57A reporting requirements and are considered reportable fringe benefits.
- A portion of the employee's contribution to the purchase price of any non-superannuation annuities or pensions you pay them is tax deductible. This portion of the employee's contribution is referred to as the "deductible amount of the undeducted purchase price of the annuity." The portion of their annual pension or annuity income that represents a return to them of their personal contributions and that is exempt from taxation is the amount that is considered to be the deductible amount. In this section, you are only required to enter the deductible amount.
- Redundancy or termination payments made to the employee during the course of the fiscal year are referred to as lump sum A. Choose either the payment for voluntary redundancy or the payment for termination.
- Payments made to the employee in exchange for long service leave accumulated prior to August 16, 1978 are referred to as lump sum B.
- The portion of an early retirement scheme payment or redundancy payment that is not subject to taxes is referred to as the lump sum D.
- Amounts paid for back payment of salary and wages accrued more than a year ago, in addition to any return to work payments that may have been made. These amounts are referred to as lump sum E (back payments).
- Exempt foreign employment income refers to money earned working abroad that is not subject to taxation. Visit the website of the ATO for further information.
When you are finished, click the Done button. Next employee
After you have completed the review of the last employee, click the Continue to Review button and then enter the authorized signatory for the summaries. The page that displays a summary of the amounts that are included on each employee's PAYG payment summary is referred to as the Review payment summaries page.
Look at the activity down here.
On the page that allows you to review payment summaries, you will find a summary of the amounts that are included on the PAYG payment summary for each employee.
Have you filed a report regarding any exempted fringe benefits in accordance with subsection 57A of the Fringe Benefits Tax Assessment Act (FBTAA) of 1986?
If you have indicated in your payroll settings that your company is subject to section 57A of the FBTAA 1986, you will generate two payment summaries for each employee for whom you have entered both non-exempt and exempt reportable fringe benefits. These payment summaries are required by the IRS.
- One payment summary will show the total amount of fringe benefits that are subject to Section 57A, as well as the answer to the question of whether or not the employer is exempt from FBT according to Section 57A of the FBTAA 1986. on the payment summary, the corresponding question will be answered with a Yes.
- The second payment summary will detail the total amount of "other" reportable fringe benefits, as well as answer the question of whether or not the employer is exempt from FBT according to section 57A of the FBTAA 1986. answer will be recorded as a negative On this payment summary, you will not find any additional payment details printed.
To access the PDF, click here. icon located in the right-hand column that, when clicked, opens the payment breakdown in a new window formatted to display PDFs. After that, you will have the option to print or save a copy of the PDF. We strongly advise you to save copies of your payment summaries in the event that you need to re-print or re-send them.
When you are finished, click the Continue button to send an email containing the payment summaries.
Emailing payment summaries
On the page labeled Email payment summaries, you will find a button that allows you to send PDF copies of payment summaries to your staff members.
When you are finished, click Email, then continue to create a file for online lodgement in order to send payment summaries via email to the employees who were chosen. If you haven't chosen any employees to email, you can still create a file for online lodgement by clicking the Continue button.
You will create an electronic file on this page, which will then be submitted to the ATO through their online portal.
Enter lodgement details
- It is up to you to decide whether you will lodge your PAYG payment summaries report with the ATO on your own or whether you will hire a third party (such as your accountant or bookkeeper) to do it for you.
- Enter the details of your company here, including the address of your business, your ABN or WPN, and the contact information for the person at your company who is responsible for lodging the PAYG payment summaries. Enter this information for the third party as well if you are going to use them to lodge the payment summaries on your behalf.
Make the EMPDUPE file, and then submit it.
To create an EMPDUPE file, click the button. This generates a digital file that you can store on your personal computer at your convenience. When you click on this button, you will possibly be asked whether you want to save or open the file. Select Save (or Save As), and make sure to keep track of the location where you save the file. In the event that you are not prompted to choose a location to save the file, it is possible that it has already been saved to your Downloads folder or to the location that you have set as your default download location.
The button to create an EMPDUPE copy was disabled. Make sure that you have filled out all of the required fields:
Register this document with the ATO using their Business Portal. Enter your myGov credentials in order to log in to the Business Portal, then navigate to the Lodge file page (you'll find it in the menu), select Lodge > Browse, and finally locate and select your EMPDUPE file in the window that appears.
You need to be using a browser that is compatible in order to access the Business Portal.
Once you have used the ATO business portal to submit your payment summary annual report (EMPDUPE), a confirmation report will be generated for you.
You are free to disregard the WM02 warning that is displayed on your confirmation report if it pertains to the "street address line 2." It will merely let you know that the second line of your company's address is left blank. This is typical for the majority of addresses.
The successful lodging of your EMPDUPE file will not be hindered in any way by this warning. Verify the information contained in your confirmation report to determine whether or not the EMPDUPE form you submitted was successfully processed.
You might have prepared your payment summaries and saved them as PDF documents when you were working on them. In that case, you just need to open the previously saved PDF and print it again.
In the event that you did not save PDF copies of the documents, you are able to print them once more from the PAYG Payment Summary Centre (located under the Payroll menu and under PAYG payment summaries).
You can even reprint a payment summary from an earlier year by choosing the fiscal year that you need to print from:
After making your selections for the applicable employee and fiscal year, click the button. Review payment summaries
To access the PDF, click here. icon located in the right-hand column to bring up the payment summary, after which you should print it.
See the article on reprinting a payment summary for more information (and pictures).
You have the ability to make the following changes to any one or more of the payment summaries:
Repeat the steps outlined above to generate an updated EMPDUPE file and prepare updated payment summaries if you have not yet submitted the payment summary annual report to the ATO in the form of an EMPDUPE file. Throw away any EMPDUPE files that were created in the past.
If you have already submitted the EMPDUPE file to the ATO, you are able to start the payment summary process all over again for the employees who require changes. Choose the appropriate fiscal year and employees whose payment summaries need to be updated from the PAYG Payment Summary Centre (Payroll menu > PAYG payment summaries). Now, click the Payment Summary Information button, followed by the Edit Summary Details button. You are now able to choose Yes, since this is an amendment.
Carry on with the process of producing payment summaries so that you can incorporate the amendments. You will also be able to generate a revised EMPDUPE file that includes the updated information and that can be uploaded to the ATO by you.
Please refer to the article on amending a payment summary for additional information as well as images.
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