Xero payroll year end 2022.Learn to Thrive

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Whether you need to finalise Single Touch Payroll STP data or produce payment summaries, this Xero checklist will help you navigate the end of year payroll process from start to finish. The Xero checklist will assist you in reviewing your key information in Xero Payroll to reduce filing errors, reconciliation of your previous pay runs, finalising the STP data Single Touch Payroll , filing the the STP data to the ATO via Xero, preparation of payment summaries previously named Group Certificates , assist in troubleshooting adjustments and completing your superannuation obligations.

If you require further assistance with your payroll we are more than happy to work with you. Drop us an email at support thriveadvice. Liability limited by a scheme approved under Professional Standards Legislation. ABN 85 Learn to Thrive. Previous Article Next Article.

Start to. All rights reserved Site Design Privacy Policy. Small business owners: Want to free up 6 hours of your time every single week with a few simple changes? Pin It on Pinterest.

 
 

 

Xero payroll year end 2022. Prepare payroll for the new financial year

 

Review your opening balances in Xero to make sure they’re up-to-date before year-end. Click on the organisation name, select Settings , then click Payroll settings.

Select the Opening Balances tab to view opening balances. In the Payroll menu, select Employees. Click an active employee’s name to open their details, then select the Opening Balances tab. Posted by Shay McCusker. You can find more information here. Check that your employees have the correct NI category letter, and update any annual deferment certificates. This is a new, final task for this tax year. New national insurance relief Starting from April , HMRC will introduce new NI categories for the national insurance holiday for employers of veterans and the freeports employer national insurance relief.

New National insurance threshold As of 6 July , the new Primary threshold for National Insurance will take effect, providing all employees with a higher threshold before the calculation of national insurance contributions.

Popular this week. New Ultimate plan offers most comprehensive Xero package for small businesses by Rachael Powell 26 April Xero’s commitment to gender equality and fair pay for all by Nicole Reid 2 March Xero and Capital One partner to help rewire the small business economy by 11 May Small businesses name Xero the most-loved accounting software for the second year in a row by Trent Innes 24 August Show all. You need payroll admin access to prepare payroll data for the end of the financial year.

Reconcile payroll data with the general ledger Run the Payroll Activity Summary report and make sure you select all employees and the financial year you’re checking.

Review payment summary details and fix any errors Run the Payment Summary Details report , select all employees and the financial year you’re checking before reviewing the amounts for each employee.

Review payment summaries In the Payroll menu, select Employees. 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. What’s next?

Once you’ve generated payment summaries for your employees, you can submit these to the ATO. Still have questions? Start a discussion Ask our community of customers, accountants and bookkeepers.

Contact Xero support Raise a case with our support team. Matching report balances. In your Payroll Activity Summary. Liability limited by a scheme approved under Professional Standards Legislation. ABN 85 Learn to Thrive.

 
 

Xero payroll year end 2022

 
 

If you’ve opted in to STP before 1 July , you can’t produce payment summaries for the financial year. At the end of the financial year, reconcile your payroll to the general ledger and fix any errors. Ensure you’ve posted your last pay run for the financial year before continuing. Run the Payroll Activity Summary report and make sure you select all employees and the financial year you’re checking.

Run the Trial Balance report , select the last date of the relevant period and sort by account name. Use the following table to check your payroll data by matching the report balances in your Payroll Activity Summary report and the Trial Balance report. If balances don’t match, check your pay run history to find the pay run with the error and process an adjustment. Once all balances are correct, you need to review the payment summary amounts.

Run the Payment Summary Details report , select all employees and the financial year you’re checking before reviewing the amounts for each employee. If you find any incorrect amounts in the payment summaries, you’ll need to fix these before you continue. Review and finalise the summaries before sending them as a payment summary annual report to the ATO. Pre-tax deductions reduce gross wages on the payment summary at the end of each financial year.

You can add these if they need to be reported as reportable fringe benefits in the employee payment summary. If employee fringe benefit taxes FBTs exist, you can edit these when you review the payment summary. If your employee has a Working Holiday Maker status, their payment summary will display their income status type as ‘H’. Payment summaries for other employee types will display as ‘S’.

Go to payroll settings to review all the information that impacts your payroll reporting. If anything is incorrect, you can update this before processing your first pay run for the new financial year.

You can also take this opportunity to check that any final employee payments and changes have been put through. Here are some tips that may help:. Any errors made throughout the financial year such as missed or incorrectly posted pay runs can be corrected using an unscheduled pay run.

Simply create the pay run for the required period, and enter the adjustment amounts. These adjustments will be filed with Inland Revenue. You can even enter negative values, if needed.

Earnings certificates can be issued to employees at the end of each tax year, or at the end of their employment. To clarify, employers are not legally obligated to issue earnings certificates to employees. Remember that from 24 July , employees are entitled to 10 days of sick leave as at their next anniversary. For example, an employee with a sick leave anniversary of 5 April who works 3 days a week, 10 hours a day, would previously have an annual sick leave entitlement in Xero of 50 hours 5 days x 10 hours per day.

They will need this entitlement updated to hours 10 days x 10 hours per day. An employee with the same sick leave anniversary who spreads their 30 hours across 5 days 6 hours per day will need their entitlement updated from 30 hours 5 days x 6 hours per day to 60 hours 10 days x 6 hours per day.

Your payroll accounts are now in good shape for the new financial year. Any pay runs with a payment date on or after 1 April will fall within the next financial year. In the meantime, check out Xero Central for more information on how to prepare payroll for the new financial year , or register for our payroll financial year end webinar on 24 February Our friendly support team is also available if you need a hand. If your employee has a Working Holiday Maker status, their payment summary will display their income status type as ‘H’.

Payment summaries for other employee types will display as ‘S’. In the Payroll menu, select Employees. Click Payment Summaries. If you’ve set up STP, you can access old payment summaries.

Click End of year reports , then select Payment Summaries. Enter your organisation’s details, then click Confirm and Continue. Under Financial Year Ending , select the correct year. Review the summary details for each employee. Select the checkboxes next to all employees, and 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. Submit payment summary annual report to the ATO. Report the payment summaries to the ATO.

Ask our community of customers, accountants and bookkeepers.