EOY Finalisation

What is End-of-year finalisation?

Read more about EOFY from here.

 

Until STP was introduced, employer would export their Empdupe file from their Accounting software and upload it at ATO's Portal to finalise their payroll tasks. However, since 1st July 2019, STP was introduced and it was made mandatory for employers with 20+ employees. For employers who have to lodge STP after each pay run, employers need to lodge their Final Pay of the year via STP to notify ATO.

 

Although STP is optional for employers with 19 or less employees, some of the businesses joined STP early to learn and get used to it before it gets compulsory for everyone from 1st July 2019. Some joined either from 1st July 2018 and few later in the same financial year. Employers who have joined STP part way through the year, they might have terminated employees prior to joining. Hence, those terminated employees pays have not been reported via STP.

 

Some employers also have casuals where the employer might not know when would be the final pay of the employee for the financial year.

 

You need to finalise your employee's STP information through your STP-enabled solution by making a finalisation declaration by 31 July 2019.

- “End-of-Year Finalisation through Single Touch Payroll.” Australian Taxation Office, 13 May 2019, www.ato.gov.au/Business/Single-Touch-Payroll/Report-through-Single-Touch-Payroll/End-of-year-finalisation-through-Single-Touch-Payroll/  

This article will explain how to handle finalising the pays of the year for each of the above scenarios using different versions of Reckon Accounts to make your EOFY as smooth as possible.

 

Final Pay option in Reckon Accounts versions

Reckon Accounts 2018 R2 (Desktop and Hosted)

STP was available with Reckon Accounts 2018 R2 only (Desktop and Hosted).

In Reckon Accounts 2018 R2, you will have to use "Final Pay Event" option to mark your last pay run as the final pay of the year. Only use this option if your last pay had EVERY employee in it. If you have at least 1 employee that's not part of the pay, upgrade to 2019 R2 and use the new "Finalise Year" option to lodge your EOFY payroll info to ATO via Reckon GovConnect. Click here to learn more about how Final Event works.

 

Reckon Accounts 2019 R1

Similar to Reckon Accounts 2018 R2, you will have to use "Final Pay Event" option to mark your last pay run as the final pay of the year. Only use this option if your last pay had EVERY employee in it. If you have at least 1 employee that's not part of the pay, upgrade to 2019 R2 and use the new "Finalise Year" option to lodge your EOFY payroll info to ATO via Reckon GovConnect. Click here to learn more about how Final Event works.

 

 

Reckon Accounts 2019 R2

Reckon Accounts Desktop and Hosted 2019 R2 were released in June 2019.

In Reckon Accounts Desktop and Hosted 2019 R2, "Final Pay Event" has been replaced with "Finalise Year" to accommodate different scenarios that an employer might be in, as explained at the above section.

You can think of this option as the replacement of the current Empdupe creation process for STP.

Once you choose this option, all of your employees paid throughout the chosen financial year will show in the list. You can select all/specific employees to export their final Year To Date (YTD) data of their pays.

 

You will have to lodge your last pay of the financial year just like any other regular pay. Once you have lodged the last pay via Reckon GovConnect successfully, only then you will also use the Finalise Year option to export and mark the pays of all employees as Final for the chosen Financial Year (FY).As per strict instructions from ATO, users are requested to not use both Empdupe and STP to lodge same employee's data as it doubles up the pay details at ATO's end. If you have used STP for any employee, then it is recommended to use STP (Finalise year option) to lodge final pay details of all employees to ATO.

 

Employers with 20+ employees

Since 1st July 2018, STP is mandatory for employers with 20+ employees. All employers with 20+ employees must be using STP to report their pays. You will not be using Empdupe function to lodge your Payroll data.

 

To finalise their year, you must be following the below guidelines based on the Reckon Accounts you are using:

 

Reckon Accounts 2018 R2

Reckon Accounts 2019 R1

Reckon Accounts 2019 R2

  • When exporting the last pay of the financial year, tick "Final Pay Event" from Single Touch Payroll Lodgement screen in Reckon Accounts.
  • Only use this option if ALL of your employees were part of the last pay. Otherwise, lodge your last pay as usual and upgrade to 2019 R2 to lodge final YTD of ALL employees using the new Finalise Year option.
  • When exporting the last pay of the financial year, tick "Final Pay Event" from Single Touch Payroll Lodgement screen in Reckon Accounts. 
  • Only use this option if ALL of your employees were part of the last pay. Otherwise, lodge your last pay as usual and upgrade to 2019 R2 to lodge final YTD of ALL employees using the new Finalise Year option.
  • If you didn't finalise your payroll in your previous version of Reckon Accounts, because you had at least 1 employee who wasn't part of your last pay, export the last pay as any other pay
  • Do not update any of the pays from 2018-19 FY by opening them within Reckon Accounts 2019 R2 because this version includes the latest tax table (as of June 2019) for 2019-20 FY, which might alter your previous year's Tax amount.
  • Login to Reckon GovConnect and upload this exported file by choosing New Pay Run / Full File Replacement option
  • Lodge your submission
  • Login to Reckon GovConnect and upload this exported file by choosing New Pay Run / Full File Replacement option
  • Lodge your submission
  • Login to Reckon GovConnect and upload this exported file by choosing New Pay Run / Full File Replacement option
  • Lodge your submission

 

  • Once you have lodged the last pay successfully:
    • Navigate to Employees > Single Touch Payroll Lodgements screen in Reckon Accounts
    • Tick "Finalise Year" and choose the FY (example: 2018/19)
    • Choose the employees to export their data (Select All/tick the desired employee) > Lodge
    • Login to Reckon GovConnect and upload this exported file by choosing Update Event option
    • Lodge your submission

 

Employers with 19 or less employees

Joined STP from 1st July 2018

If you joined STP from 1st July 2018 and you have lodged EVERY employee's pay details via STP throughout the year, then you will be using STP to finalise your payroll. You will not be using Empdupe function to lodge your Payroll data.

 

To finalise their year, you must be following the below guidelines based on the Reckon Accounts you are using:

 

Reckon Accounts 2018 R2

Reckon Accounts 2019 R1

Reckon Accounts 2019 R2

  • When exporting the last pay of the financial year, tick "Final Pay Event" from Single Touch Payroll Lodgement screen in Reckon Accounts
  • Only use this option if ALL of your employees were part of the last pay. Otherwise, lodge your last pay as usual and upgrade to 2019 R2 to lodge final YTD of ALL employees using the new Finalise Year option.
  • When exporting the last pay of the financial year, tick "Final Pay Event" from Single Touch Payroll Lodgement screen in Reckon Accounts
  • Only use this option if ALL of your employees were part of the last pay. Otherwise, lodge your last pay as usual and upgrade to 2019 R2 to lodge final YTD of ALL employees using the new Finalise Year option.
  • If you didn't finalise your payroll in your previous version of Reckon Accounts, because you had at least 1 employee who wasn't part of your last pay, export the last pay as any other pay. If you didn't finalise your payroll in your previous version of Reckon Accounts, export the last pay as any other pay
  • Do not update any of the pays from 2018-19 FY by opening them within Reckon Accounts 2019 R2  because this version includes the latest tax table (as of June 2019) for 2019-20 FY, which might alter your previous year's Tax amount.
  • Login to Reckon GovConnect and upload this exported file by choosing New Pay Run / Full File Replacement option
  • Lodge your submission
  • Login to Reckon GovConnect and upload this exported file by choosing New Pay Run / Full File Replacement option
  • Lodge your submission
  • Login to Reckon GovConnect and upload this exported file by choosing New Pay Run / Full File Replacement option
  • Lodge your submission

 

  • Once you have lodged the last pay successfully:
    • Navigate to Employees > Single Touch Payroll Lodgements screen in Reckon Accounts
    • Tick "Finalise Year" and choose the FY (example: 2018/19)
    • Choose the employees to export their data (Select All/tick the desired employee) > Lodge
    • Login to Reckon GovConnect and upload this exported file by choosing Update Event option
    • Lodge your submission

Joined STP part way through the 2018-19 Financial Year

If you joined STP after 1st July 2018, but before 1st July 2019 and you did not lodge EVERY employee's pay details via STP throughout the year, then  we recommend you to use STP to finalise your payroll. You will not be using Empdupe function to lodge your Payroll data.

 

To finalise their year, you must be following the below guidelines based on the Reckon Accounts you are using:

 

Reckon Accounts 2018 R2

Reckon Accounts 2019 R1

Reckon Accounts 2019 R2

Upgrade to Reckon Accounts 2019 R2

Upgrade to Reckon Accounts 2019 R2

  • Export the last pay as any other pay
  • Do not update any of the pays from 2018-19 FY by opening them within Reckon Accounts 2019 R2 because this version includes the latest tax table (as of June 2019) for 2019-20 FY, which might alter your previous year's Tax amount.

 

  • Login to Reckon GovConnect and upload this exported file by choosing New Pay Run / Full File Replacement option
  • Lodge your submission

  • Once you have lodged the last pay successfully:
    • Navigate to Employees > Single Touch Payroll Lodgements screen in Reckon Accounts
    • Tick "Finalise Year" and choose the FY (example: 2018/19)
    • Choose the employees to export their data (Select All/tick the desired employee) > Lodge
    • Login to Reckon GovConnect and upload this exported file by choosing Update Event option
    • Lodge your submission

Didn't join STP in 2018-19 Financial Year

If you didn't join STP between 1st July 2018 and 30th Jun 2019, then you will be using the existing Empdupe functionality to export your payroll data and lodge it via ATO Business Portal.

 

Summary

  • When do I use Final Event?
    • If ALL employees (between 1st July 2018 and 30th June 2019) of your company are part of your last pay and you have lodged all terminated employees termination pay of the financial year through STP, you can tick this option when you lodge your last pay
  • When do I use Finalise Year?
    • If at least 1 employee (between 1st July 2018 and 30th June 2019) of your company was NOT part of your last pay or you terminated employee in the financial year but did not either join STP by then or did not lodge their Termination pay through STP, then lodge your last pay as a normal pay, upgrade to 2019 R2 and use Finalise Year option to lodge your EOFY payroll data.

 

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