Sage WageEasy End of Year 2019/2020 - CA Management Services
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Sage WageEasy End of Year 2019/2020
Copyright
© Sage Software Australia Pty Limited 2020 ABN 40 071 007 326
All rights reserved.
This publication is the copyright of Sage Software Australia Pty Limited ABN 40 071 007 326. Apart
from copying permitted under the Copyright Act 1968, no part of this publication may be copied,
reproduced or communicated to the public by any process, electronic or otherwise, without the
express written permission of Sage Software Australia Pty Limited.
Disclaimer
This material is provided for informational purposes only. Accordingly, Sage does not provide
advice per the information included. The use of this material is not a substitute for the guidance of
a lawyer, tax, or compliance professional. When in doubt, please consult your lawyer, tax, or
compliance professional for counsel. The Sage product(s) described herein is/are governed by the
terms and conditions per the Sage End User License Agreement ("EULA") or other agreement that
is provided with or included in the Sage product. Nothing in this document supplements, modifies,
or amends those terms and conditions.
Trade Marks
Sage, Sage logos, and Sage product and service names mentioned herein are the trademarks of
The Sage Group plc or its licensors. All other trademarks are the property of their respective
owners.
Sage_WageEasy_EOY_UserGuide_2019-2020_10100
Contents
Copyright ................................................................................................................................................... 2
Disclaimer ................................................................................................................................................. 2
Trade Marks .............................................................................................................................................. 2
Chapter 1 ..........................................................................................................................................5
About this User Guide ...................................................................................................................... 5
What’s in the End of Year User Guide? .................................................................................................... 5
How do I use these User Guide? .............................................................................................................. 5
Fonts and Symbols ................................................................................................................................... 6
Sage WageEasy Support for Year-end .................................................................................................... 7
Sage Recruitment Services ...................................................................................................................... 9
Sage Printed Products .............................................................................................................................. 9
End of Year Checklists................................................................................................................... 10
Section 1: Preparation End of Financial Year - 2019/2020 .................................................................... 10
Section 2: Actions End of Financial Year - 2019/2020 ........................................................................... 11
Section 3: Preparation New Financial Year 2020/2021 .......................................................................... 11
Backing up and restoring your Sage WageEasy system. ........................................................ 12
Automatic Backups ................................................................................................................................. 12
Manually backing up ............................................................................................................................... 14
Restoring a database .............................................................................................................................. 14
Customers new to Sage WageEasy in 2019/2020 ...................................................................... 18
Chapter 2 ........................................................................................................................................19
Preparation End of Financial Year - 2019/2020 .......................................................................... 19
Step 1: Decide your actions for pay period ends that fall close to year end........................................... 19
Step 2: Ensure that you are using the correct version of Sage WageEasy ............................................ 25
Step 3: Prepare for optional Payment Summary Production .................................................................. 26
Step 4: Confirmation of Company Details............................................................................................... 27
Step 5: Confirmation of Allowance and Deductions settings. ................................................................. 29
Step 6: Confirmation of Superannuation settings ................................................................................... 32
Step 7: Check Employee Details ............................................................................................................ 35
Step 8: Verify your JobKeeper payments ............................................................................................... 37
Step 9: Enter Reportable Fringe Benefit Tax or Exempt FBT Amount ................................................... 43
Step 10: Print Reports & Reconcile Payment Summaries’ values ......................................................... 44
Chapter 3 ........................................................................................................................................54
Action End of Financial Year - 2019/2020 ................................................................................... 54
Step 11: STP Mark Final Pay Reporting Event....................................................................................... 54
Step 12: Backup ...................................................................................................................................... 58
Step 13: Optional Employee ATO Payment Summary Production......................................................... 58
Step 14: Backup ...................................................................................................................................... 59
Step 15: House Cleaning (optional) ........................................................................................................ 59
Chapter 4 ........................................................................................................................................60
Preparation for New Financial Year – 2020/2021 ....................................................................... 60
Step 16: Update of Tax Tables to 2020/2021 ......................................................................................... 60
Step 17: Update of Modern Awards Supported by Sage WageEasy ..................................................... 63
Step 18: Withholding for 27 fortnights/53 weeks (if Applicable) ............................................................. 64
Step 19: Superannuation Obligations 2020/2021 ................................................................................... 65
Step 20: Backup ...................................................................................................................................... 67
EOFY Resources ............................................................................................................................. 68
Chapter 5 ........................................................................................................................................70
Conclusion ....................................................................................................................................... 70
Appendices.....................................................................................................................................71
Appendix 1 – User-defined Reports or Queries ......................................................................... 71
Appendix 2 – Prepare for optional ATO Payment Summary Production ............................... 72
Appendix 3 – Optional ATO Payment Summary Production ................................................... 75
Appendix 4 – ATO Payment Summary fields explained ........................................................... 80
Chapter 1
About this User Guide
The information in these guidelines aims to make your End of Financial Year processing as easy
as possible by providing step by step instructions and examples.
You should refer to this user guide during End of Year processing in Sage WageEasy. If you need
to contact the Help Desk throughout the End of Year processing, please ensure you have this user
guide handy.
What’s in the End of Year User Guide?
The main sections are as follows:
• Preparing for End of Year
• Performing End of Year process
• Preparing for New financial year
How do I use these User Guide?
This User Guide is applicable to Sage WageEasy version 7.2.1.8185 and higher. Each section
provides information that covers:
• background for performing set up or operating tasks.
• steps involved to perform tasks identified.
• tips and pointers about best operating practices.
Sage WageEasy EOY User Guide 2019/2020 Page 5 of 81
Fonts and Symbols
Fonts and
Type of Information
symbols
Menu Path All menu paths are displayed in italics with a format similar to
Reports > User-defined > Address Labels. This path shows the
menu path to follow and, if applicable, the current screen.
Screen All fields, checkboxes, radio buttons and buttons are highlighted
Components on the page.
Emphasis Used to emphasize the importance of a point or for variable
expressions such as parameters.
CAPITALS Names of keys on the keyboard, for example, SHIFT, CTRL, or
ALT.
KEY+KEY Key combinations for which the user must press and hold down
one key and then press another, for example CTRL+P, or
ALT+F4.
The thumbs up symbol denotes handy hints related to the current
topic.
The cloud symbol denotes items that contain information related
to the current topic.
The exclamation or warning symbol denotes items which we
recommend you read and take notes of in the current topic.
The hand or stop symbol denotes items which contain information
which MUST be considered in the current topic.
This glasses symbol indicates that there is further related
information in Sage Knowledgebase. This can be accessed via
https://au-kb.sage.com/ or www.sage.com/au
Sage WageEasy EOY User Guide 2019/2020 Page 6 of 81
Sage WageEasy Support for Year-end New this year, Sage City has a dedicated section for Year-end articles and discussion. Sage WageEasy EOY User Guide 2019/2020 Page 7 of 81
Otherwise we offer these seven support options.
Description Contact
A chat bot smart assistant available via the icon bar or Help
menu within Sage WageEasy
Sage Knowledgebase https://au-kb.sage.com/
Sage City www.sagecity.com
Help system found via the Help menu of the software or by
Help System
using F1 of your keyboard.
Instructional
www.sage.com/au/trainingonline
presentations
Email support.wageeasy.au@sage.com
Phone 1300 924 332
Sage WageEasy EOY User Guide 2019/2020 Page 8 of 81
Sage Recruitment Services
Should you require the assistance of temporary payroll staff during the End of Year period, please
call Sage Recruitment Services in your State.
Description Contact
NSW/ACT (02) 9884 4042
VIC / TAS (03) 8643 3521
QLD (07) 3199 2003
SA / NT (08) 8366 6102
WA (08) 9415 1501
Sage Printed Products
You can order pre-printed payment summary stationery from our website, over the phone or email
us an order form.
Order via Details
Website Go to www.sage.com/au then select Products and Services
> Payroll and HR > Payroll and HR Services > Pay Advices
and Stationery
Phone 1300 624 724
Email servicesales.au@sage.com
Sage WageEasy EOY User Guide 2019/2020 Page 9 of 81
End of Year Checklists
Section 1: Preparation End of Financial Year - 2019/2020
Step Action
1 Decide your actions for pay period ends that fall close to year end.
2 Ensure you are using the correct version of Sage WageEasy.
3 [Optional]
Prepare for Payment Summary Production if you plan to produce them for
2019/2020.
4 Confirmation of Company Details.
5 Confirmation of Allowances and Deductions settings.
6 Confirmation of Reportable Super settings.
7 Verify your Job Keeper Payments.
8 Confirmation of Employee Details.
9 Enter Reportable or Exempt Fringe Benefits amounts for Employees (if
required).
10 Final Print of Reports & Reconcile of YTD values:
Reports > Payment Summary > Year to Date
Reports > Union > Year to Date
Reports > Allowances > Year to Date
Reports > ATO Payment Summaries > ATO Payment Summary
Differences
Reports > ATO Payment Summaries > ATO Payment Summary
Report.
STP > STP Update > Export
Sage WageEasy EOY User Guide 2019/2020 Page 10 of 81Section 2: Actions End of Financial Year - 2019/2020
Step Action
11 STP mark “Final Pay” Reporting event for the year (equivalent to old
EMPDUPE file).
12 Backup Company Database.
13 [Optional] Produce payment summaries and verify their production.
14 Backup Company Database.
15 [Optional] Housecleaning.
Section 3: Preparation New Financial Year 2020/2021
Step Action
16 Update of Tax Tables to 2020/2021.
17 Update of Modern Awards.
18 Withholding for 27 fortnights/53 weeks (if applicable).
19 Superannuation obligations for 2020/2021.
20 Backup Company Database.
Sage WageEasy EOY User Guide 2019/2020 Page 11 of 81Backing up and restoring your Sage WageEasy system.
File > Backup/Restore
Commonly customers advise us that backups are the responsibility of their IT department where,
typically overnight, key network files are copied to a backup drive or off-site to the Cloud.
We suggest that you take a pro-active approach to the data that you manage and backup your
Sage WageEasy system manually:
1. Before you make major changes or additions to your database.
2. Before EFT production during the pay process.
3. On conclusion of the pay run.
4. At key stages during your End of Year process.
These manual backups give you an easily identifiable restore point if you need to revert your
payroll system.
Talk to your IT person about the best location to place these manual backups. Ideally, they would
be saved to a different spot on the network to that of your live database. This insures you against
critical hardware failure. In turn this manual backup location would be part of the overnight backup
taken by your IT that is likely saved off site.
Do you know the location of your Sage WageEasy database and whether your IT
department includes this location in their overnight backup? Do they know how
important your database file is?
Refer to Sage Knowledgebase for more assistance with backup and restore.
Automatic Backups
You can configure Sage WageEasy to trigger the offer of a backup:
5. On closing the system
6. Before EFT production.
You can also automate naming of backup files to include a date or to precede the backup name
with ‘EFT’ to indicate the point in the pay process.
Sage WageEasy EOY User Guide 2019/2020 Page 12 of 81File > Backup/Restore > Settings
With these settings in place, when you choose Close to end your WageEasy session, you are
offered the backup option.
Choosing Yes, triggers a dialogue like this where you select a backup location and perhaps
change the offered backup file name. Note the offered date in reverse is tacked onto the end of the
file name.
If you take multiple backups on the same day, the new one with the same file name
will overwrite that taken earlier in the day so, enter a different file name to ensure
unique backups are taken.
Sage WageEasy EOY User Guide 2019/2020 Page 13 of 81Manually backing up
If you configure your system to offer a backup on closing, then this is a simple way to trigger the
backup. The problem is, you’ve been logged out.
It is useful therefore to know how to manually trigger a backup and remain in the system.
File > Backup/Restore > Backup
By default, you will be offered the Backup option rather than Restore.
Backup Set will be Saved to C:\Users\[your Windows login name]\AppData\Roaming\Wage Easy
Payroll\Backups if the backup has never been used before. If you wish to save the backup to
another path, click on the ellipsis at the end of the line to choose the destination to save your
backup.
Files to Backup is used to list the database(s) to be backed up. The first time you use the backup
feature you must use Add at the top of the window to point to your live database file, a “.wed” file.
Once configured, the backup feature recalls this for future manual backups. Unless you have
multiple databases when it will point to the last database you backed up.
To trigger the backup, choose the CD-symbol Start icon.
Restoring a database
Navigate to File > Backup/Restore > Restore > Restore
Before restoring a database, firstly ensure that no colleagues are in the database
that you wish to restore.
Sage WageEasy EOY User Guide 2019/2020 Page 14 of 81Initially the window is largely blank waiting for you to select the backup to restore. Use the ellipsis to select the database to restore, then Open. Sage WageEasy EOY User Guide 2019/2020 Page 15 of 81
The window resolves offering the name and file path of the backup along with the affected database and its location. Choose the CD-symbol Start icon to trigger the restore. You are offered a last-chance opt-out if you wish to cancel the restore. Choose OK to proceed. Choose OK to the confirmation. Then Close. Sage WageEasy EOY User Guide 2019/2020 Page 16 of 81
If you have user-logins and passwords activated, you will be asked to login again after the restore. Sage WageEasy EOY User Guide 2019/2020 Page 17 of 81
Customers new to Sage WageEasy in 2019/2020
This section grapples with the question of whether you migrated to Sage WageEasy this financial
year from another payroll product.
If the answer is no, then skip ahead to the next section.
If the answer is yes, then there are three scenarios
This is highly unlikely.
Scenario 1.
However, if this is the case for your
You were not STP Reporting in business and you plan to rely on ATO
your old payroll system and have Payment Summary and EMPDUPE file
not yet started STP Reporting in production, you may need to rely on Sage
WageEasy. Consulting as this user guide does not
explore this superseded methodology.
There would have been a cut-off point
Scenario 2. where you switched STP Reporting from
your old system to Sage WageEasy. This
You were STP Reporting in your means that Sage WageEasy will only offer
old system which means you had year to date balancing figures for the later
no choice but to continue STP part of the year. You will need to combine
Reporting in Sage WageEasy. these figures with those of your old
system for whole-year balancing.
Scenario 3. You must ensure that the value of all pays
for the year from your old payroll software
You were not STP Reporting in product, are present in Sage WageEasy.
your old payroll system but went Employees terminated in your old system
live with STP Reporting when earlier in the year, must also be present in
you transitioned to Sage WageEasy along with the value of their
WageEasy. pays.
Sage WageEasy EOY User Guide 2019/2020 Page 18 of 81Chapter 2
Preparation End of Financial Year - 2019/2020
Step 1: Decide your actions for pay period ends that fall close to year end
Period End Date
File > Company Details > Configuration > Period End > Taxation Year Boundaries
ATO requirements are that all salary and wage payments must be reported in the financial year
they are paid.
The last day of the 2019/2020 financial year falls on Tuesday June 30. So, if your company has a
PPE on or before 30 June 2020 where the payment to staff is made on or after 1 July 2019, this
payment needs to be reported in the new financial year not the 2019/2020 financial year.
If this is the case for your business you need to change the financial Period End to exclude any
PPE dates in Sage WageEasy that fall on or before June 30, 2020 where the payment to the
employees will be made in the 2020/2021 financial year.
If BOTH the PPE date and the payment date to employees are in the same financial year, no
action is required. Please skip to Step 2: Correct Sage WageEasy version.
Year End Boundaries for End of Financial Year
Instructions for changing the Period End are found below. If the change is required, it needs to be
made prior to saving your last pay in the 2019/2020 financial year.
Important: The Period End cannot be changed if you have already saved pays
beyond that date.
Sage WageEasy EOY User Guide 2019/2020 Page 19 of 81• DO NOT change the Period End boundary if the PPE date and the payment
date are in the same financial year.
• Create a backup before you change the “Taxation Year Boundary”.
• By default, the “Taxation Year Boundary” will be 01 July – 30 June for each
Financial Year.
• This procedure is ONLY utilized in instances where the Pay Period End date
falls on or before 30/06/2020 but payment processing and so STP Reporting
Pay Event date was 1st July 2020 or later.
The End Date selected will always determine what the final PPE date is to be included in a
financial year. This Period End boundary acts as a divider to separate the PPE dates towards the
End of June from those in July. Where a PPE date falls on or before the End Date chosen, it would
be deemed in this financial year by Sage WageEasy and typically the last Pay Period End date to
use for processing EOFY. Therefore, any PPE that falls after this Period End date would be
deemed as the first PPE date to be reported in the new financial year for Single Touch Payroll.
Once the Period End date is set for one year, the following date then automatically filters through
to be the Start Date of the next financial year.
Once a payment has been processed past the set Period End date referenced in
the Taxation Year Boundaries screen, these dates cannot be changed.
New functionality in the June 2020 release of Sage WageEasy will be this warning message about
year-end boundaries and your final pay for the year. This appears in your system when your
system date reaches June.
This warning will persist in June until you have visited Setup > Preferences > Configuration >
Period End > Taxation Year Boundaries and ticked the box Reviewed Tax Year boundary for the
current financial year.
Sage WageEasy EOY User Guide 2019/2020 Page 20 of 81Period End Taxation Year End Dates are found under Setup > Preferences > Configuration > Period End > Taxation Year Boundaries. Sage WageEasy EOY User Guide 2019/2020 Page 21 of 81
Pay Period End (PPE) Pay Period End dates are represented in bold when selecting the PPE: menu option on the standard Sage WageEasy toolbar. The gold background indicates the currently selected PPE. Pay Periods setup is found under File > Company Details > Configuration > Pay Periods. Example: Where multiple PPEs are contained within the one Sage WageEasy Payroll Database There is a Calendar Month PPE 30/06/2020 but anticipated processing and paid on 15/06/2020. In addition, there is a Weekly PPE, Tuesday 30/06/2020 with pays processed and paid on Wednesday July 1, 2020. In this example, the Calendar Monthly Cycle would need to be recorded in this current Financial Year, but the Weekly PPE cycle would need to be reported as the first PPE in the next financial year. In this instance, the recommendation would be to change the Calendar Month PPE Cycle to be a Monthly Cycle that ends 28/06/2020 (later dates are not possible) and then processed as anticipated on 15/06/2020. Sage WageEasy EOY User Guide 2019/2020 Page 22 of 81
To align the Calendar Month, Pay Period Ending to be a Monthly Cycle, go to File > Company Details > Configuration > Pay Periods > Calendar Month Cycle > Edit to be a Monthly Cycle with a Pay Period End as 28/06/2020. The Taxation Year Period End Date can now be selected to End at 28/06/2020 for 2019/2020 via File > Company Details > Configuration > Period End. In the example above, as the Taxation Year Boundary Period End Date selected is 28/06/2020 for the last day of 2019/2020 Financial Year, any PPE dates that fall after 28/06/2020 will now be reported against the new 2019/2020 financial year for ATO Reporting purposes. So, a weekly cycle Sage WageEasy EOY User Guide 2019/2020 Page 23 of 81
PPE of 30/06/2020 will now report in the 2020/2021 Financial Year and not the 2019/2020
Financial Year.
After processing End of Financial Year, and before processing the next Monthly
Pay Cycle on 15/07/2020, amend the monthly pay cycle back to the normal.
Frequency: Calendar Month with PPE: Last Day of Month.
File > Company Details > Configuration > Pay Periods > Pay Periods > Monthly > Edit > Change
Frequency back to Calendar Month.
After the EOFY processing,
and before the next monthly
pay run change the Frequency
back to Calendar Month.
Possible Alternative to changing the period end
Remit the wages payment to your employees earlier than normal for that final pay in
the financial year. The practicality of this would depend on your business
processes/operating procedures and the amount of pay periods to be reported in the
financial year.
Sage WageEasy EOY User Guide 2019/2020 Page 24 of 81Step 2: Ensure that you are using the correct version of Sage WageEasy Please make sure you are on the very latest version before you commence Step 10 of your year- end processing (mark ‘Final Pay’ STP Reporting event). This user guide were prepared before the June 2020 release and so the version number in this guide may not represent the final build number. The download link and installation instructions for the latest release of Sage WageEasy will be activated via Sage Knowledgebase towards the end of June. An email communication advising customers of the June Release availability, relevant release notes and upgrade instructions will be offered at that time. You can check your own Sage WageEasy version by referring to the status bar at the base of the WageEasy window. Or, by going to Help > About Wage Easy Payroll In the above screenshot the build number is blurred out. The actual version and build number will be included in the June 2020 communication. Sage WageEasy EOY User Guide 2019/2020 Page 25 of 81
Step 3: Prepare for optional Payment Summary Production
STP Reporting means that distribution of ATO Payment Summaries to employees is no longer an
obligation for you as employers. The ATO assumes that employees or their tax agents access their
Income Statement via the myGov portal.
With ATO Payment Summaries being optional, there is no EMPDUPE file production. However,
there is the STP mark “Final Pay” step.
So, the order of events is:
Optional
STP mark
Balance ATO
“Final Pay”
YTD Payment
reporting
Values Summaries
event
production
If you still plan to offer ATO Payment Summaries to your employees, refer to Appendix 2 at the end
of this document for more information on ATO Payment Summary preparation.
Sage WageEasy EOY User Guide 2019/2020 Page 26 of 81Step 4: Confirmation of Company Details
File > Company Details
At this point in your end of year preparation we encourage you to check your payroll Company
Details. This will prepare you for STP mark Final Pay and for your optional ATO Payment
Summaries and production.
Company Name & Payer ABN
To access Company Details, select File > Company Details
To change your company details, click on the Change Company Details button. This will then
activate the Registration Wizard where you will be able to amend these details by selecting
“Change Licence details”. Ensure you print or save the Registration form to .pdf upon completing
the wizard and either fax it to 03 9947 9250 or email to licensing.wageeasy.au@sage.com for the
issue of a new licence.
Contact the support team if you do not know your customer number on 1300 924 332 or
support.wageeasy.au@sage.com
• If the Company name is not entered and you have only entered a Trading name,
the ATO payment summaries issued to employees will not have the Payer’s
name / Company name.
• Confirm that the Company name, Trading Name, A.B.N. and A.C.N are entered
as required by the ATO. http://www.abr.business.gov.au will enable you to run an
ABN search to check the Company name registered against the ABN that you
utilize.
WARNING: Only click on the Change Company Details button if the details need
to be corrected. By changing the Company details your database will immediately
default to a temporary licence. (ACTIVE FOR 60 DAYS) Whilst awaiting the
reissue of a new primary licence number, please keep selecting Register Later
when prompted to access the database as per usual.
Sage WageEasy EOY User Guide 2019/2020 Page 27 of 81Company Address, Details of Contact Name & Contact Numbers
File > Company Details > Address
Both the Street Address and Postal address need to be fully completed. Where the addresses are
the same, duplicate the street address in the postal address field.
Note that your Suburb must be entered in the City field and all fields are mandatory except for Fax
and Email.
The “State” field must be entered in Capitals as required by the ATO. The “State” field will default
to capital letters when entering new details. If you have all the State fields entered in lower case
due to data entry in earlier versions of Sage WageEasy you can run a query to capitalise the State
field.
Sage can provide you with a query that will capitalise all your State fields. Ask Pegg,
or search Sage Knowledgebase which offers a zip file containing this query.
Also, the country field is a mandatory field.
Sage WageEasy EOY User Guide 2019/2020 Page 28 of 81Step 5: Confirmation of Allowance and Deductions settings. In Sage WageEasy, Allowances refers to functionality handling both additions and deductions to an employee’s pay. The latter are sometimes referred to as deduction allowances. Deductions for Union Fees have devoted functionality separate from Allowances. Refer to Preparation Step 10 associated with reconciling reports where the Unions Fees Report is explored along with Union Fee configuration. For STP reporting, the ATO requires Allowances which are reported separately to the employee's individual non-business Gross amount, to be categorised according to a pre-defined list of ATO Types. These are the Allowances that, prior to STP Reporting, would have been itemised separately on employee INB payment summaries, e.g. Meal Allowances, Car Allowances. These separated allowances are excluded from the Gross total on the ATO Payment Summary report and are listed separately for claiming individually by employees when lodging their tax return. It is therefore very important to only show qualifying allowances separately via STP Reporting and on the optional ATO Payment Summary and not all allowances paid to employees. Any other Allowances that were set up and ticked as a Taxable Allowance will automatically have the (paid or deducted) value, incorporated into the Taxable Gross figure throughout the Financial Year. The same functionality can be applied to deduction allowances for Workplace Giving. You can locate Allowances via Setup > Allowances. The resulting window offers an overview of your allowance configuration for STP Reporting. Select and edit an Allowance then choose the ATO Payment Summary tab. At the base are fields associated with STP. They are the “Report in STP” tick box and the associated “ATO Type” field. Sage WageEasy EOY User Guide 2019/2020 Page 29 of 81
If you are planning to produce ATO Payment Summaries this year, you will still need to configure the original fields at the top of the window so that they offer consistent reporting. The example shown above therefore complies both with the old standard and the new STP reporting standard. A report explored in Step 10 relies on configuration within the employee record to properly display Allowances on Payment Summaries and so via the ATO Payment Summaries Report. Navigate to an employee file the Payments > Allowance. Ensure that each qualifying Allowance is marked to be included in ATO Payment Summaries and so on the ATO Payment Summaries Report. Sage WageEasy EOY User Guide 2019/2020 Page 30 of 81
Consult your Company Accountant for advice on which Allowances may need to be separated in STP Reporting and on the ATO payment summary in the Allowances area. Sage WageEasy EOY User Guide 2019/2020 Page 31 of 81
Step 6: Confirmation of Superannuation settings
Before the STP mark Final Pay and optional ATO Payment Summary production, it’s important to
check your configuration of both:
• Ordinary Time Earnings (OTE) calculated for employer Superannuation Guarantee
Contributions (SGC).
• Reportable Employer Superannuation Contributions (RESC) on employee salary sacrifice
and qualifying additional employer superannuation contributions.
Ordinary Time Earnings
STP Reporting supplies the ATO information on your OTE and so on your superannuation
guarantee obligations.
Thus, before your end of year, it’s a good idea to check each of your Awards’ Superannuation
Guarantee settings to ensure that the correct OTE pay components have been included in the
superannuation calculation parameters to date.
Head to Setup > Awards then within each Award navigate to Payments > Superannuation to check
that the correct Payment Conditions have been selected.
If you discover some Payment Conditions are incorrectly configured, this has implications for your
superannuation guarantee payments for the year to date implying an overpayment or under
payment of superannuation.
Contact the Sage WageEasy helpdesk for assistance in how best to identify the scale of the
discrepancy and its resolution.
Reportable Employer Superannuation Contributions (RESC)
Since the 2009/2010 tax year, the ATO have required reportable employer superannuation
contributions to be displayed on ATO Payment Summaries.
With Single Touch Payroll, reportable super configuration still applies, only the STP Reporting step
offers the RESC values to the ATO.
Sage WageEasy EOY User Guide 2019/2020 Page 32 of 81RESC:
• Employee superannuation deductions before tax (salary sacrifice).
• Qualifying Additional Employer Contributions.
For information regarding the rules for RESC, please consult the ATO web site.
To identify those Employees who may have Salary Sacrificed to Super or had Additional Employer
Contributions that are reportable as RESC run Reports > User defined > Super by Department with
Gross Total Report.
After these Employees have been identified visit their employee records using Employee File >
Payments > Superannuation then select the Salary Sacrifice or qualifying Employer Additional
Contribution line and Edit. Ensure the box “Include on ATO Payment Summary as RESC” is ticked.
To make sure previously processed payments are offered to the ATO as RESC, you may need to
run a User Defined query called “Fix RESC flag 2020” that retrospectively applies the setting back
through the year.
Sage WageEasy EOY User Guide 2019/2020 Page 33 of 81The “Fix RESC flag 2020” query is available in a zip file containing both Reports and
Queries useful at end of year. Ask Pegg “Where do I get the end of year user
defined queries and reports?”
Check if RESC has been configured for STP Reporting by drilling down into a previously reported
STP Pay Event. You may need to right mouse click and Customise then drag and drop the RESC
field into the grid to see the value displayed like this.
Alternatively, run the ATO Payment Summary Report Reports > ATO Payment Summaries > ATO
Payment Summary Report.
Sage WageEasy EOY User Guide 2019/2020 Page 34 of 81Step 7: Check Employee Details
Reports > User-defined Report > Employee Address & Tax file Number
Run this report to identify any missing information or incorrect data entries for your Employees.
Changes will need to be made before your STP ‘Mark Final Pay’ Update Event explored later in
this document.
If you do not have this User Defined Report currently displaying in your menu, ask
Pegg, “Where do I get the end of year user defined queries and reports?”
If you do not have this User Defined Report currently displaying in your menu, email
support.wageeasy.au@sage.com for it to be sent to you as a file attachment. Refer to Appendix 1 for
more information on User-defined reports and queries.
Use this report to check that all employees are listed with their correct name, their current address,
post code and a valid Tax File Number (TFN)
For Employees without Tax File Numbers the following options can be entered
000 000 000 – No TFN quoted by Employee
111 111 111 – Employee applying for TFN
333 333 333 – Employee under 18 and not earning enough to pay tax*
444 444 444 -- Employee is a pensioner
987 654 321 -- Alphabetic characters in quoted TFN
*Employees have 28 days to give their payer a completed Tax file number declaration form with
their tax file number (TFN) on it or to claim an exemption from quoting a TFN. An exemption from
having a Tax File Number may be claimed if the employee will not earn enough income to pay tax
and they are under 18 years of age.
To prompt your Employees to check and update the current details that you have for
them, it may be an idea in the pay periods leading up to your End of Financial year
to show these details on their payslips.
Set Up > Messages > Add
Sage WageEasy EOY User Guide 2019/2020 Page 35 of 81Add a global message to all employee’s pay slip asking them to let you know if their address has changed in the last 12 months or is different from that appearing on the pay slip after following the next instructions. Employees can also check that their TFN is correct. Setup > Preferences > Pay Slips Select the tick boxes to show the Employees their current address and their Tax file number on their pay slips. Sage WageEasy EOY User Guide 2019/2020 Page 36 of 81
Step 8: Verify your JobKeeper payments
This step is for those of you who have been paying JobKeeper payments to your employees. The
goal is to encourage you to review your JobKeeper set up and payments so far, perhaps identify
any issues, and point to possible solutions.
Of concern are:
• ensuring you have paid the full $1500 per JobKeeper fortnight
• have still accrued leave for JobKeeper payment employees
• that Super Guarantee has been correctly applied on what would have been their ordinary
earnings where appropriate.
At the time of writing, Sage Knowledgebase has four articles on JobKeeper that are
pertinent to this step. Search for these headings:
• JobKeeper FAQs
• How do I set up JobKeeper Allowance in Sage WageEasy?
• How do I make changes for COVID-19 Stand Down?
• How do I set up JobKeeper allowance in Sage WageEasy to get to this
report?
We encourage you also to join the conversation on JobKeeper via SageCity.
This user guide will therefore not repeat the detail of these articles.
If you are paying JobKeeper, then you will have created a specific JOBKEEPER-TOPUP
Allowance configured as an Addition before tax with an ATO Type of Other.
It must have a Description of JOBKEEPER-TOPUP entered exactly as below. Notice that Include
in Super Calculation is not ticked. Therefore, when applied, this Allowance will not trigger super
guarantee payments.
Sage WageEasy EOY User Guide 2019/2020 Page 37 of 81In the ATO Payment Summary tab, notice that it is configured for both traditional ATO Payment Summary and for STP Reporting. An extra step you may wish to explore is how this has resolved in the employee file, particularly if you value the ATO Payment Summary report when balancing. Below is an example of an employee file for someone who has received JOBKEEPER-TOPUP and displayed is their Payments > Allowance section. Notice that the Pay Sum column has a tick against all those allowances that are to appear on the ATO Payment Summary and so, on the ATO Payment Summary Report. Sage WageEasy EOY User Guide 2019/2020 Page 38 of 81
There are three possible payment scenarios for JobKeeper:
1. Normal pay which equals or exceeds $1500 per fortnight
2. Ordinary pay plus JOBKEEPER-TOPUP equals $1500 per fortnight
3. JOBKEEPER-TOPUP Addition only to the value $1500 per fortnight
Normal Pay alone equals or exceeds $1500 per fortnight
In this first scenario you have employees who qualify for JobKeeper payments and their normal
pay usually equals or exceeds $1500 per fortnight. In which case, there is no need to use the
JOBKEEPER-TOPUP Allowance.
The presumption is that you have triggered JobKeeper for these employees by including the
appropriately numbered JOBKEEPER-START-FNxx Allowance.
If employees in this group have left your service or became ineligible, then another presumption is
that you have applied the JOBKEEPER-FINISH-FNxx Allowance in the JobKeeper fortnight after
they were paid their termination pay.
If you can agree to all these variables, then you can rely on their leave accrual to work as normal,
for super guarantee to calculate correctly and that they have been paid JobKeeper correctly.
Sage WageEasy EOY User Guide 2019/2020 Page 39 of 81Ordinary pay plus JOBKEEPER-TOPUP equals $1500 per fortnight
In this second scenario, you are using the JOBKEEPER-TOPUP Allowance to make up the
difference between their ordinary pay and the $1500 JobKeeper payment. Again, the presumption
is that the start and finish JobKeeper Allowances have been appropriately applied for the
commencement and, the less likely end of JobKeeper payments.
In Timesheet terms, the expectation is that you will complete their timesheet with normal hours and
other usual pay components plus the JOBKEEPER-TOPUP Allowance to bring their total Gross to
$1500 per fortnight.
As they are receiving their ordinary pay plus top up, then you can rely on their leave accrual to
calculate as normal and for their super guarantee to work out correctly. The key factor to consider
then is: have you achieved $1500 for each JobKeeper fortnight for qualifying employees?
Sage Knowledgebase article called “How do I set up JobKeeper allowance in Sage
WageEasy to get to this report?” offers a User Defined Query that can be used to
confirm whether employees have reached $1500 per fortnight.
Below is an example of this User Defined Query: “Jobkeeper-topup Payment Guide”.
Sage WageEasy EOY User Guide 2019/2020 Page 40 of 81So, in this second scenario, you identify JOBKEEPER-TOPUP employees that have not reached $1500 per fortnight and take action to pay the shortfall. JOBKEEPER-TOPUP Addition only to the value $1500 per fortnight The third scenario is where you have only used the JOBKEEPER-TOPUP pay component to pay the $1500 gross. Again, the presumption is that the start and finish JobKeeper additions after tax have been appropriately applied for the commencement and if required, the end of JobKeeper payments. Of concern is whether the employee has worked or has been stood down. Also, whether leave has still accrued correctly for these employees. The Sage Knowledgebase article on set up of JobKeeper, suggests where employees would normally be on ‘hours worked’ leave accrual Awards, to create copies of these Awards configured as Yearly accruals, then associated these JOBKEEPER-TOPUP paid employees with this alternate Award. Sage WageEasy EOY User Guide 2019/2020 Page 41 of 81
Thus, for stood down employees, the JOBKEEPER-TOPUP pay along with switching them to a ‘yearly leave accrual’ Award are all you need be concerned about. If the employee worked then they need to both accrue leave and receive super guarantee on the equivalent to their ordinary time earnings. Your task then is to establish whether they worked or not. If they did, you may need to create Supplementary Payslips to pay the missing super guarantee. You might also review your pay methodology for these employees so that no further remedial work is required. Sage WageEasy EOY User Guide 2019/2020 Page 42 of 81
Step 9: Enter Reportable Fringe Benefit Tax or Exempt FBT Amount
Employee > Edit Employee > Payments > ATO Summaries > Fringe Benefits
If an employee has a Reportable Fringe Benefit Value, the Grossed-up Taxable Value must appear
in STP Reporting and so optional ATO Payment Summary production. These amounts are
calculated from 1 April – 31 March.
The Reportable Fringe Benefits Amount is the grossed up taxable value of certain
fringe benefits provided to you by your Payer for the FBT year (1 April to 31 March),
where the taxable value of those benefits exceeds $2,000.
https://www.ato.gov.au/Rates/FBT/?page=11#Reportable_fringe_benefits
The Grossed-up Taxable Value is entered directly into the ATO Payment Summaries screen under
the Employee File, Employee > Payments > ATO Summaries > Fringe Benefits.
In the 2016/2017 financial year, Fringe Benefit reporting changed to accommodate Exempt Fringe
Benefit.
Types of organisations that are exempt from paying FBT, include public benevolent institutions,
health promotion charities, public and not-for-profit hospitals and public ambulance services.
Sage Knowledgebase explores configuration of your Sage WageEasy system for
Exempt Fringe Benefit. Search for “How do I set up FBT Exemption”.
Please check with your Company Accountant or seek advice from the ATO with regards Non-
Exempt and Exempt Reportable Fringe Benefits.
Community Development Employment Project Salary or Wages
From 1 October 2011 payments under the CDEP scheme have ceased however, some
participants may still receive such payments under a 'grandfather' arrangement. For further
information, refer to the Department of Human Services website www.humanservices.gov.au.
https://www.ato.gov.au/Forms/PAYG-withholding-for-Community-Development-Employment-
Project/?page=1#Introduction
Sage WageEasy EOY User Guide 2019/2020 Page 43 of 81Step 10: Print Reports & Reconcile Payment Summaries’ values
In preparing your end of financial year you will need to reconcile your year to date. This means that
you run and reconcile reports to ensure that payroll balances back to your accounting system.
There are five to run from the Reports menu:
• Payment Summary > Year to Date
• Union Fees > Year to Date
• Allowances > Year to Date
• ATO Payment Summaries > ATO Payment Summary Differences
• ATO Payment Summaries > ATO Payment Summary Report
• STP Update report
If you have changed your financial year end boundaries as discussed in Preparation Step 1, then
you would run the above reports with dates ranges outlined in your File > Company Details >
Configuration > Period End for the current year.
When creating the Reports, the
“From” and “To” Dates
selected for End of Financial
Year reporting would need to
be your equivalent of these
dates. This will ensure that
only PPE dates falling between
these dates will be captured.
If you have utilized the Period End option, but would still like to create the reports
using Sage WageEasy’s Financial Year to date option, you will need to utilize an
additional report Reports > Payment Summary > Financial Year Difference to balance
what will be recorded in the STP mark Final Pay event (and on the optional ATO
Payment Summaries) for the Financial Year 2019/2020.
Sage WageEasy EOY User Guide 2019/2020 Page 44 of 81Reports > Payment Summary > Year to Date (Financial)
The Payment Summary is a record of what your Employees have been paid through Sage
WageEasy for the financial year 2019/2020 as per their saved pay slips.
The Net and Tax totals from this Payment Summary Report need to balance to your external
records. Your overall company financial records/reports that you could use to balance this
Payment Summary Report to, may be stored in either a General Leger system (GL) or Profit &
Loss system (P&L). Your Accountant will be able to assist in providing you with the figures to
balance wages, tax, superannuation, union, allowances and other payments made to employees.
If your business does not use one of these systems check the amounts against your bank deposit
records.
Reasons for discrepancies:
• If you crossed over to Sage WageEasy mid financial year and you were STP
Reporting in that previous system, then Sage WageEasy will only report on pays
it generated for the remainder of the year.
• Payments have been made to Employees outside of Sage WageEasy and
recorded in your GL/Bank Deposits but not in Sage WageEasy payroll.
• Data has been entered into a copy of the original database.
• Employee files have been deleted.
• You have set up an alternate Period End within your Period End table and not
customized this Report’s date range to match (Use the Financial Year Payment
Summary Difference Report).
Once a discrepancy is identified and understood, it can then be rectified. If additional Payments
need to be entered a Supplementary pay slip may be used (File > Maintenance > Supplementary
Payslip).
After making any required amendments, rerun this report and confirm the figures are now correct.
Every other report should now balance back to this Payment Summary Report.
Sage WageEasy EOY User Guide 2019/2020 Page 45 of 81Reports > Union Fees > Year to Date (Financial) Printing the Union Fees report will confirm those employees who have contributed to a Union and the amounts they have contributed over the year. If you have configured an alternative Period End date for your close of year, ensure you run this Report using the Start and End dates identified for financial year to capture all PPEs within. Union deductions will appear separately in STP Reporting Year to Date in a field called Fees which is optional and added to the window using the Right Mouse Click > Customise option. If you are producing the optional ATO Payment Summaries this year, then Union Fees will also be separately listed there. If employees with union fees are missing from STP Year to Date figures or from the Union Fees report, you may find that the Union has possibly been set up as a deduction allowance in error under Set Up > Allowances. Check your list to see if a Union Allowance was created and possibly used. Running the Reports > Allowances > Year to Date would reveal if this were the case. Sage WageEasy EOY User Guide 2019/2020 Page 46 of 81
If you find a union deduction allowance has been configured, ensure that it is configured correctly for union fee STP Reporting. Navigate to Setup > Allowances > [Find the component and Edit] > ATO Payment Summary. Sage WageEasy EOY User Guide 2019/2020 Page 47 of 81
Reports > Allowances > Year to Date
This report will show you the YTD values that have been paid or deducted for each type of
allowance. If you have an alternative Period End date setup for your year-end boundaries, you will
need to run this report using the Start and Finish dates, as identified in the Period End screen.
This will cover all the Pay period ends within this range rather than selecting the YTD (financial)
option to reconcile.
Not all Allowances need to display on an employee ATO Payment Summary. Please consult with
your Accountant, Association for a full listing of allowances required to show separately in STP
Reporting.
https://www.ato.gov.au/forms/payg-payment-summary---individual-non-
business/?page=4#Allowances
Refer to End of Year Preparation Step 5 for detail on Allowance configuration.
Sage WageEasy EOY User Guide 2019/2020 Page 48 of 81Reports > ATO Payment Summaries > ATO Payment Summary Differences
This report highlights any variations between Sage WageEasy’s Payment Summary report (saved
payslips) and what is going to be presented in the STP mark Final Pay event for an employee (and
so in optional ATO Payment Summary production. You can verify an individual employee’s values
via Employee File > Payments > ATO Summaries. In most cases this report should appear with the
message “No Matching Records Found for this report”.
A reason that an Employee would show on this Report is where ATO Payment fields
in the employee files have be edited; an amount may have been accidently changed.
Once a discrepancy is identified and understood, it can then be rectified if needed, by editing the
fields under Employee File > Payments > ATO Summaries. Highlight the Gross Wages and/or Tax
Paid cell and type in the ‘true’ identified amount.
Rerun the Report to check that any accidental changes have now been rectified.
Sage WageEasy EOY User Guide 2019/2020 Page 49 of 81Reports > ATO Payment Summaries > ATO Payment Summary Report.
This report displays the exact amounts that will appear on optional ATO Payment Summaries. So,
if you have configured Allowances, Union Fees, RESC etc. appropriately for both ATO Payment
Summaries and STP Reporting, then this report will balance with your STP year to date figures.
This is the final check that everything balances to your Payment Summary YTD before the STP
mark Final Pay event. If you have been selecting “Financial Year to date”, as opposed to
customizing your date range, you will need to run the Reports > Payment Summary > Financial
Year Differences report if your Period End dates selected are not 01/07/2019- 30/06/2020.
You can now also check the figures against the new Payment Date report under
Reports > By Payment Date > Payment Summary > Year to Date, the figures shown
will be the figures as per the EFT Banking process date.
Total Gross – Refers to the overall Total taxable payments made to the Employee via payslips
processed through the payroll. This is referencing the “Gross Wages” field from the Employee >
Payments > ATO Summaries screen. Total Gross = PS Gross + Lump Sum A + B + D + E + CDEP
+ ETP + Pre-Tax Allowances flagged to show separately via STP Reporting.
Total Tax is the overall Total amount of tax that has been withheld from the Employee via payslips
processed through the payroll. This is referenced in the “Tax Paid” field in Employee > Payments >
ATO Summaries. Total Tax = PS Tax + ETP Tax.
PS Gross – Refers to what will show in the Year to Date Gross field in STP Reporting. This is
referencing the “Summary Gross” field from the Employee > Payments > ATO Summaries screen.
PS Gross = Total Gross - Lump Sum A - B - D - E - CDEP – ETP - Pre Tax Allowances flagged to
show separately on payment summary.
PS Tax – Refers to what will print in the Year to Date Tax field in STP Reporting. This is
referencing the “Summary Tax” field in Employee > Payments > ATO Summaries. PS Tax = Total
tax – ETP tax
The ETP Gross and ETP Tax figures can be found in the Employee file under Employee >
Payments > ATO Summaries screen > ETP tab. These fields will only be accessible once the
Employee has been terminated.
Sage WageEasy EOY User Guide 2019/2020 Page 50 of 81Discussion about the contents of STP Reporting and ATO Payments summaries.
What do the Lump Sum fields in the ATO Payment Summary Report mean?
Lump Sum Lump Sum Description
Codes
Lump Sum A For unused long service leave that accrued after 15 August 1978 but
before 18 August 1993; or
For unused holiday pay and other leave related payments that accrued
before 18 August 1993; or
For unused long service leave accrued after 15 August 1978, or unused
holiday pay or related payments, where the amount was paid because
you ceased employment under an approved early retirement scheme,
because of invalidity or because of bona fide redundancy.
This entire amount is taxable, but the maximum rate of tax is 30% plus
the applicable Medicare levy rate.
Lump Sum B For unused long service leave which accrued before 16 August 1978.
Average marginal rate on 5% of amount.
Lump Sum D A tax-free bona fide redundancy payment or approved early retirement
scheme payment. This amount is not taxable and should not be included
on an income tax return.
Employment Cash lump sum on termination of employment. If you produce the
Termination optional ATO Payment Summaries, an extra one called labelled
Payments (ETP) Employment Termination Payment will be produced for terminated
employees with qualifying pay components. See Appendix 4 for an
exploration of ETP Type codes.
Lump Sum E or For back payment, exceeding $400, which accrued more than 12 months
Lump Sum ago. This entire amount is taxable, but a tax rebate (also known as a tax
payment in offset) may be available.
arrears
Reporting Rules for a Lump Sum E payment
Lump Sum Payments in arrears that are equal to or greater than $400.00 must be STP Reported
as label Lump Sum E. You must also provide the employee with a letter that details over which
financial years the amount was accrued and the gross amount which accrued over those years.
Where the Lump Sum Payment is less than $400.00, the gross amount should be included against
the Gross in STP Reporting. No explanatory letter to the employee is required in this instance.
Further details can be as follows:
https://www.ato.gov.au/rates/schedule-5---tax-table-for-back-payments-
commissions-bonuses-and-similar-payments/
What is and isn't an Employment Termination Payment?
Refer to the ATO website https://www.ato.gov.au/business/your-workers/in-
detail/taxation-of-termination-payments/?page=2#Payments_that_are_ETPs
Sage WageEasy EOY User Guide 2019/2020 Page 51 of 81You can also read
