With the introduction of the Single Touch Payroll (STP) Processing the end of the year process has slightly changed.

Clients that are already reporting year to date figures to the ATO via STP are no longer required by legislation to provide payment summaries to employees.

Clients who are STP compliant and choose to provide payment summaries to their employees via ichris/chris21 and/or via HR21 may continue do so.

ichris/chris21 and HR21 version requirements for producing payment summaries is communicated once this information is made available by the vendor. The Vendor has advised recently that the minimum BRE version is 8.16.17

The rest of the processing will remain the same.

• • Download the latest Engine Update required for the EOY (if applicable)
• • Read Release Notes for the latest update
• • Load into Test environment for user acceptance testing and then Production environment (if applicable)
• • Read the Australian End of Year GTR Read Me File in full, and action steps to  load
• • Load the Australian End of Year GTR file to load the reports
• • Process Reportable Fringe Benefits Tax (if applicable)
• • Verify Staff Details – using Report Designer reports PAYSUMTY, ADDRCHK, TAXFILNO, TERMLOCN, TERMNATD, STAF+TER
• • Verify Company Details – on forms GCD, GCO, GCP
• • Nominate payments to appear on Payment Summary – GCA_LIST
• • Check ETP codes and amounts paid – ETPDET
• • Check Foreign Employment Income has been recorded (if applicable)
• • Update all pay runs for the financial Year 2019/2020
• • Complete Month End process and Clear down Month to date figures (where applicable)
• • Reconcile YTD totals – YTDRECON report (PHQ – Pay History to PYP -Pay Period)
• • Reconcile to STP final report
• • Fix any errors and if necessary, resend the Amended file to ATO
• • Copy Database in the New EOY environment to keep year to date values

You are now ready to run the Generate staff Payment Summary (GCF) and ETP details files for the Australian Tax Office (ATO) and generate Payment Summary documents (you can run this as history only or to generate the file).

Payment Summary File (GCF) Test lets you test original or amended payment summaries. Previously the Payment Summary File (GCF) process only allowed testing of original payment summaries.

It is recommended to test and review your payment summaries before running in Production mode.

When the Payment Summary File Type of Run is Test and the Original or Amended radio button is selected and the process is:

• • run, test records are saved in the EOYAU file.
• • rerun, any previous test records matching the selection criteria are deleted from the EOYAU file.

Existing production records are not affected by a test run.

The Payment Summary Update (GCU) report uses the temporary file to allocate values to update Certificate Number on the Tax Details (PYT) form.

The Clear End of Year (CLR) report uses Certificate Number on the Tax Details form to identify staff for whom year-to-date amounts are to be cleared.

The Payment Summary File process creates or updates entries on the Latest Payment Summary File (GCM) form which stores a list of payment summaries for each staff member. Staff members can select and print a summary by viewing this list in HR21.

Before you produce Payment Summaries for the closing financial year, run the Payment Summary List (GCL) report to list all staff to whom certificates have been issued throughout the year, i.e., terminated staff.

The total from running the report on terminated staff and the total from the Payment Summary File report or the Tax Certificates (GCS) report provide you with totals for end-of-year balancing.

If a staff member was terminated during the year and a payment summary was issued manually, you must enter the certificate number in Certificate Number and select the Manual Certificate checkbox on the Tax Details form to prevent a second certificate being generated for the staff member by the Payment Summary File or Tax Certificates report.

You can use the Payment Summary File report to issue Payment Summaries for terminated staff during the year by running the Payment Summary File report with the Terminated Staff Only checkbox selected.

Complete a backup of the system prior to commencing clear down process.
Clear End of Year (CLR)

Resets year-to-date amounts for staff in preparation for the next financial year.
Reset PYP Values (MDC)

Set staff member’s Alternate year-to-date totals on the Pay by Period and Component YTD forms to zero if the Finance is not using alternate year to date values for other purposes.

Update the Tax Details (PYT) Fixed Tax rate

This is a fixed percentage rate of tax the Australian Taxation Office (ATO) allows a staff member to be charged.

If a non-zero value is entered in the field, all tax calculation processes are based on this rate for the staff member. The staff member’s marginal rate of tax will also default to this rate.

Tax file for new financial year

Check if the vendor’s website if they have released a new Tax file for the new financial year.

Download and Install the Tax file. Confirm Tax Parameters (TXP) accurate post tax installation.