The Pay Slip document is used to process the pay of Employees. The Pay Slip document may be emailed or printed for each employee. Alternative Pay Slips are available at Reports > Payroll > Pay Slip.
After all pays are complete within a pay run, Reports > Payroll > Single Touch Upload should be used to upload employee, tax, and super information to the ATO.
Generating Pay Slips for Active Employees
1. Select an Employee.
Select an Employee
2. 'New Period'
Prepares the default Standard Pay Cycle Payslip information and displays (YTD) Year To Date data.
3. 'Create Cycle'
Copies the Standard Pay Cycle (default Pay Slip information) to Current Pay Cycle. It is at this point that any non-standard information would be added or removed from the Current Pay Cycle, eg the Employee may have worked more or less hours than standard, of different Time Types may be used, ie Leave.
4. 'Confirm Pay'
Is the confirmation of the Current Pay Cycle, posting accounting entries. Repeat these steps for each active employee.
Reports > Payroll > Single Touch Upload
After all Pay Slips are complete, go to Reports > Payroll > Single Touch Upload. To upload employee, tax, and super information to the ATO.
Tax Scale Data is provided by the Australian Taxation Office. Each employee needs to have a Tax Scale established (typically SCALE 2), within Employee Details.
Time Type settings are used in the Type columns of the Pay Slip. Time Types should have appropriate columns activated for Single Touch Payroll Reporting
Employees details, including Employment Basis, Tax Category, Tax Scale, Tax File Number, Super Fund, Super No, and Fund Id are held at: Documents > Employee > Details. It is important that these settings are correctly established.
** Tax Weeks is an Essential Field for Tax Calculations **
Set to 1.000 for a weekly pay cycle. For fortnightly pay, this field should be set to 2.000. Where an employee is temporarily paid for, ie 5 weeks all at once, Tax Weeks should be set to 5 for that corresponding pay cycle, to generate the correct tax amount over 5 weeks. In the event that “forward pays” are desired, ie over a 3 week Christmas period, where it is expected that regular pay runs will not be completed, Tax Weeks would be set to 3, and 3 weeks quantity of pay would be entered.
** SGC (Super Guarantee Charge) Percent is an Essential Field for Tax Calculations **
Superannuation Guarantee rate (2021 to 2026 and beyond) 10.00% - 1 July 2021 – 30 June 2022 10.50% - 1 July 2022 – 30 June 2023 11.00% - 1 July 2023 – 30 June 2024 11.50% - 1 July 2024 – 30 June 2025 12.00% - 1 July 2025 – 30 June 2026 and onwards
Standard Pay Cycle Table: Establish those aspects of a pay which repeat from pay week to pay week. After 'New Period' from the ribbon, 'Create Cycle' will copy Standard Pay Cycle information to the Current Pay Cycle (below), in preparation for addition information that may be added, before confirmation.
Quantity (hours) and Pay Rate.
- Ledger and Account are defined at General Ledger Chart of Accounts. - E.g. TRADING : WAGES : (DIRECT:COST) General Wages - E.g. TRADING : WA DIRECTORS : (INDIRECT:EXPENSE) Directors
- Type is defined at Payroll > Time Types. A Type must be associated with each Pay Cycle Line.
2. 'New Period'
Page 3 Pay Slip
Clicking 'New Period' is essential for each employee and will result in the date and pay settings prepared for a new pay cycle.
'New Period' populates YTD (Year To Date) fields.
3. 'Create Cycle'
Page 4 Pay Slip
'Create Cycle' copies data from the Standard Pay Cycle (table) to the Current Pay Cycle (table). In preparation for the addition of any non-standard entries, specific to this current pay. The Current Pay Cycle remains editable until 'Confirm Pay'.
4. 'Confirm Pay'
Page 5 Pay Slip
'Confirm Pay' will display a Nett Confirmed figure, update YTD figures, and display the SGC Confirmed value. Pay is then complete for this employee. Posting are made to accounts associated with payroll.
After all pays are complete within a pay run, Reports > Payroll > Single Touch Upload should be used to upload employee, tax, and super information to the ATO.
*Reverse
In the event of an error, a confirmed payslip can reversed by placing a tick in the Reverse field, and clicking 'Confirm Pay' from the ribbon. This will blank Nett Confirmed, and re-calculate YTD figures.
Payroll Accounts
Page 6 Pay Slip
Sequencing
Select Employee
'New Period'
'Create Cycle'
'Confirm Pay'
Single Touch Payroll
Establish employee.
Date and pay settings prepared for new pay cycle.
Copy Standard Pay Cycle to Current Pay Cycle
Confirm Current Pay Cycle. (Including any manual or automated adjustments made). Accounting entries are made by clicking 'Confirm Pay'.
Reports > Payroll > Single Touch Upload Phase 2: Forwards employee, tax, and super information to the ATO.
LEDGER
ACCOUNT
TYPE
CATEGORY
GST
NAME
Trading
Wages
Indirect
Expense
No
General Wages
Payroll
BLAJOE
Employee
Balance
Pay Clearing
Current
Liability
No
Net Pay Clearing
Balance
Group Tax
Current
Liability
No
Provision for Taxation
Balance
Super (SCG)
Current
Liability
No
Provision for Superannuation
Creditor
SUPERFUND
E.g. Superannuation Fund
Confirm Pay for an Employee
TRADING : WAGES Debit 1520.00 at Normal TRADING : WAGES Debit 80.00 at Double Total Taxable value is 1600.00 Which accumulates temporarily in PAYROLL : BLAJOE (Employee)
From PAYROLL : BLAJOE 1230.00 is posted from PAYROLL : BLAJOE -> to BALANCE : PAY CLEARING 370.00 is posted from PAYROLL : BLAJOE -> to BALANCE : GROUP TAX Leaving PAYROLL : BLAJOE with a zero balance
The net result of Superannuation is: Debit to TRADING : SUPER (SGC) Credit to Creditor : SUPERFUND (The Employees Super fund of choice)
Payroll Accounts
Page 7 Pay Slip
Both BALANCE : PAY CLEARING, and BALANCE : GROUP TAX, are current liability accounts which build balances associated with credits from individual employee Payroll Accounts.
At the conclusion of a pay cyle, as in the example below, a general ledger payment is made debiting Balance Pay Clearing for the total of wages to be paid in that cycle. Thus reducing Pay Clearing to zero in preparation for the next pay cycle.
Pay Clearing
Group Tax
• Reset employee YTD Pay Slip totals at the beginning of a new financial year. After the first pay run in July, go to: Reports > Payroll Analysis
Page 8 Pay Slip
After
the first pay run in July has been confirmed for all current employees, recompute the Pay Slip YTD (year to date) totals in the new financial year by running the Payroll Analysis report with parameter settings as shown.
Set the Period from July to June, for the new financial year.
Within the Pay Slip Standard Pay Cycle table, an entry in the (Time) Type Column ie SALSACDED (Salary Sacrifice Deduction), may be associated with the BALANCE ACCOUNT ie SS-BLAJOE (Salary Sacrifice Joe Black).
The example BALANCE SS-BLAJOE and BALANCE LOTTO are typically current liability accounts.
