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Reconcile end of year and Payroll Summary reports in Reckon One payroll

Learn how to reconcile your end of financial year (EOFY) finalisation report and your Payroll Summary report in Reckon One payroll.

Generate reports and YTD values

Before you start, you need to collect the reports and figures you'll need to reconcile. To make it easier, generate both reports in separate tabs:

  1. Make a note of any YTD values entered for your employees by going to Payroll, Employees, then Edit details and Edit on Initial YTDs
  2. Create an EOFY finalisation report.
  3. Open the Payroll Summary Report in a new tab: go to Reporting, then right-click on Reports and select Open in a new tab. (Or on a Mac, hold down the command key and click on the link). Then find the Payroll Summary Report under the Payroll category.

Understand the reports

There are a few key differences in the figures each report shows, and how they're displayed.

Payroll Summary Report

EOFY finalisation report

Shows all pay run figures, including pay items that are not reported via single touch payroll (STP)

Shows only pay run figures that are reported via STP.

Excludes:

  • Reimbursements
  • Company contributions
  • Deductions that have the deduction type as Other (and Deduct from gross before calculating withholding is not checked)
  • any Ordinary Time Earnings (OTE), Variable, Overtime, Bonus and Commission, Directors Fee where the Calculation method is Tax free

Does not include initial YTD values or fringe benefits tax (FBT)

Includes initial YTD values

Shows aggregated gross amounts (amounts that are made up of several different payment types). e.g. The Earnings & leave gross amount on this report is made up of Gross Pay, Leave, Overtime, Bonus & Commissions, Directors Fees, Lump Sum and ETP

Shows disaggregated gross amounts (a separate amount for each payment type) e.g. separate amounts are shown for Gross Pay, Leave, Overtime, Bonus & Commissions, Directors Fees, Lump Sum and ETP

Reconcile the reports

To reconcile the reports, you're comparing the values in the Payroll Summary Report with the values on the EOFY finalisation report.

The totals may vary dependent upon what type of pay item has been used throughout the pay run, or entered as initial year to date (YTD) values. For example, to reconcile earnings and leave amounts, you'll need to add the relevant disaggregated earnings & leave values in the EOFY finalisation report (such as Gross Pay, Leave, Overtime, Bonus & Commissions, Directors Fees, Lump Sum and ETP) and subtract any YTD values. This should equal the Earnings & leave total in the Payroll Summary Report.

Using an example to explain the reconciliation process

In this example book there are 5 employees, each with different payment types to show how you can reconcile the EOFY report to the Payroll Summary report.

Looking at the EOFY report page, the Report summary displays the totals. You can use these totals to reconcile against the totals on the Payroll Summary report.

Let's look at the variances.

~ Gross earnings do not match

~ Reimbursements do not have any value on the EOFY report

~ Post tax deduction is not displaying on the EOFY report

~ Company contributions do not have any value on the EOFY report

You now need to check the individual employees to determine if the variances are expected.

Values appearing on payroll summary but not EOFY report

Employee Tim WILLIAMS has been paid a Company contribution within the financial year. As this is a post tax allowance, the ATO do not require this data, therefore it will not appear on the EOFY report.

Employee Dean FAIRBANKS has been paid a Reimbursement within the financial year. As this is a post tax allowance, the ATO do not require this data, therefore it will not appear on the EOFY report.

Employee Michelle SWEENEY has had a deduction within the financial year. As this is a post tax deduction, the ATO do not require this data, therefore it will not appear on the EOFY report.

Gross earnings do not match

Employee Sue McCUTCHEON, has been paid Overtime and Leave within the financial year. These values are disaggregated on the EOFY report as this is what is expected by the ATO, therefore when viewing the EOFY report I need to add the Gross pay, Leave and Overtime to reconcile against the Earnings & leave on the Payroll summary report.

Employee Brian PORTER, has had initial year to date values entered within the financial year. As these values do not appear on the Payroll summary report, you need to access their employee profile to view the data entered.

Once you are content with the values on your EOFY report, you can now send them to the ATO.

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Need more help?

Ask the Reckon Community at: https://community.reckon.com/categories/reckonone

Or log a Support Ticket: https://www.reckon.com/au/support/

How did we do?

Use the zeroing out method to make YTD figures zero in Reckon One

How to submit update event STP in Reckon One Payroll

Related Articles

End of Financial Year (EOFY) finalisation in Reckon Accounts
Finalise single touch payroll (STP) in Reckon One
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