Bookkeeping – End of year June final pay falls in new financial year and paid in July

Client question –

Just a quick question. We have an employee being paid fortnightly.

The next payment is to be made on 03/07. This includes the week 27/6 to 30/6. Does any of this have to be put through in EOFY?  Or will it be the first payment for New Financial Year on the New tax tables?

Solution–

Payroll is accounted as a cash payment in the accounts – that is, WHEN it is paid

Regardless of what period it covers – it is WHEN it is paid. So the pay run is not included in the previous tax year.

You can finish your payroll year, prepare the Payment Summaries – check you include in Gross Payments, any NEW payroll types/categories if you created any during the year

Then roll forward to new payroll year, and you can process the 7/7 payroll that covers end of June days and some of July days.

To confirm – see the ATO discussion here, and also, you can find information about end of year payments to employees on the ATO website.

Need help? Not sure? Call for FREE 30min advice / strategy session today!

Call and you also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!

Email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 0407 361 596 Australia

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MYOB – Tax Tables for 2020-2021 – to v19 (Classic MYOB)

The current ATO tax tables have been updated for salary or wage payments you make to employees between 1 July 2020 and 30 June 2021.

The new Year 2020-21 tax tables include considerable changes to all Student Loans. Repayments now commence at a lower annual gross and the maximum rate has increased to 10%. All other rates and thresholds remain as they were from 1 July 2019. – (see the ATO website for more details.)

Does your older “classic” MYOB software have out of date tax tables, or you know you need them by experience every year?

(To find what you have, in MYOB, click Set Up then General Payroll Information. In about the middle is the table date at the start of that tax year it applies to.)

Tax tables become out of date nearly each year if tax rates and/or Medicare and HECS thresholds are changed by the Australian Tax Office (ATO).

MYOB only supply new tax tables via a full software annual subscription. You can no-longer buy the latest tax tables separately as many years ago. Users must upgrade to a new version or take out Cover under their support program to receive the latest tables or ‘pay2myob.bin’ file for earlier versions (MYOB), to keep payroll compliant.

(If you want assistance to upgrade to the latest MYOB call Paul - 0407 361 596 or email us – This email address is being protected from spambots. You need JavaScript enabled to view it. .)

The special tax file (eg ‘pay2myob.bin’) has been specially formatted so that it disallows any manual edit. Additionally, each version is formatted specially, so you can’t use a tax file formatted for MYOB Version 19 with say Version 16. For the Mac version (AccountEdge®) the tax table file is called “MYOB Tax Tables” or in v9 to 9.6 has a “.tax” extension. Everything else though is the same and all the comments here apply equally to the Mac version, and Quickbooks.

Note third-party tax tables cannot be used in “live / cloud” MYOB 2011 onwards – you MUST have a subscription or upgrade. Contact the software supplier.

If you have older “Classic MYOB” desktop versions, there is a solution up to MYOB v19.13 and Account Edge 15.5 – Third party updated tax tables available for $90 provide a substitute, have been tested by ourselves and clients and work with many prior versions v6. They are for those who want to continue to use their current versions of MYOB® without the need to upgrade.

Note that there is nothing in your license agreement that prevents you using 3rd party tax tables.

Details about options for v19.4 and 19.5 are on the link near the top of the writing on the page from the link above.

Installation is simple. The tables are supplied with easy to follow video and instructions and instantly downloaded after secure credit card  payment in most instances, or will be emailed to you. You also receive a PDF copy of the applicable Aust Tax Office Weekly Tax Table for you to check the accuracy of the calculations. After-sales email support is available for any installation or setup issues you may encounter.

If you would like Account Keeping Plus to install for you, we can do by remote desktop – Teamviewer (free software). For $75+GST. Call or email for instructions.

Note - NO changes are made to the software. The only changes made are to the tax rates in your company data file that the software calls upon to calculate PAYG Withholding in a pay, when processing payroll. The changes made are not permanent and can be reversed by reloading the tax tables from your current tax table file, simply moving a file in the software folder

These third-party tables are available, which Account Keeping Plus have tested in the software and tested against the ATO tables and work perfectly for us and our clients. To get more details and purchase for your MYOB – CLICK HERE

For the latest tax tables, to download the PDF and keep a copy, or use the Tax Withheld Calculator go to  ATO Tax Tables – PDF’s

Need help? Not sure? Call for FREE 30min advice / strategy session today!

Email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 0407 361 596 Australia
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QBO – Quickbooks Online – Year End Business Tax Planning – Support to prepare the books/accounts!

Quickbooks Online(QBO) have range of resources, guides and handy calendars to assist you with Year End Business Tax Planning to prepare better books for your accountant, but more importantly for you to have an accurate set of books to UNDERSTAND and gain INSIGHT to MANAGE your business BETTER! Your books and accounts are a treasure-trove of information that tell you about the health of your business and what areas you can work on to improve your business financial results!

When is the Australian financial year?

The Australian financial year (also the Australian tax year) runs from 1 July to 30 June. At midnight on 30 June, the financial year ends, your business books are closed once completed and reconciled, and you report your financial situation to the Australian Tax Office (ATO). They use this information to figure out how much tax you owe.

The main QBO page is the EOFY (end of financial year) Resource page for –

1. A great tool is the Handy Tax Calendar see tasks for either Sole Traders or Small Business

2. Online Checklist – download also available!

3. Year End Guide and Checklist – details provided for each step in QBO

In summary, most businesses have to complete and report many of these key steps –

• Reconcile bank, PayPal, Stripe, Square and credit cards to 30 June date to the statements
• Reconcile Payroll, PAYG, super
• Finalise Payroll STP Processing end of year payroll with STP – see Task 7 at each step
• Stock Take – reconcile Inventory
• Sales and Purchases all entered as dated 30 June
• BAS – review detail reports and any adjustments required ready for 28 July
• State Payroll Tax – report in July
• Superannuation – previous month or quarter – due 28 July
• Workcover – can lodge online in July, once Payroll completed
• TPAR – Taxable Payments Annual Report – for contractors in key industries

Get a FREE 30 min answer to your query, and FREE ongoing email or phone support

No-one offers as much! Call and you also get FREE “Avoid these GST mistakes”

There’s 18 that the Tax Office see regularly – Get them right!

Email  This email address is being protected from spambots. You need JavaScript enabled to view it.  or

call 0407 361 596 Australia

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