We thought we would give you a few simple steps when preparing your employees PAYG Summaries (Group Certificates). This could save time and issues in the future.
1. Make sure you have processed and paid the last pay run. Employees PAYG Summary should include only wages paid to them during the financial year.
2. Ensure you have your employee personal details up to date- addresses, tax file numbers, date of birth etc.
3. Once the above two steps are completed you can start to complete the PAYG Summaries. Before starting the process you need to print a Profit and Loss for the year and also a summary of wages paid per employee. The total of the 2 reports should match. This should then match the total of the Gross Wages when preparing your PAYG Summaries.
4. When preparing your PAYG Summaries ensure that you are correctly recognising the following components:
a. Salary sacrificed reportable superannuation- this should be just the salary sacrificed amount and not include the SG Contributions (9.5% amount)
b. Allowances need to be recognised in the Allowance section of the PAYG Summary
c. Lump sum payments- if you have terminated employees during the year you may have lump sum payments to report.
d. Reportable fringe benefits relates to the taxable value of certain fringe benefits you provided to your employees during the FBT year ended 31 March 2015. You must include the grossed up value you calculated in your FBT return, provided it exceeds $2,000
5. When completing your June BAS you need to ensure that you review what wages and tax withheld you have reported and that this matches what is reported on your BAS’s.
If you are having difficulties in reconciling items please do not hesitate to contact our office. This is an area we have noticed an increase in ATO audit activity due to ATO data matching which is why it is important to get it correct.