Checklist

Tasks to do now

The following tasks need to be done per system

• Verify the software maintenance is up to update.

• Increase super rate and Max/Min superannuation contribution base.
  Refer to this ATO Link for the Super Guarantee percentage and Maximum Contribution Base per quarter for 2022-23. 

The following tasks need to be one per company

• Check and update "Days from end of pay period" in the Pay Group maintenance.

• Update the default rate in Employer Super transaction types.
  Make sure the option of "Default % based on expected payment date" is ticked.

• Update payroll tax rates on employer cost transaction types, if in use.
• Update Workcover rates on employer cost transaction types, if in use.
• Import new tax scales.
• Review PAYG/STP configuration making sure your reporting categories and STP contacts are correct.
• Enter Reportable FBT via HR journals for all applicable employees.
• If on STP Phase 2 already, review STP employee setup for all employees terminated from 1/7/2021.

Tasks to be done at the end of the payroll year

• Process the last pay for year 2021-22.
  

• Reconcile and submit Final STP. 
  

  The final submission must be made by 14 July. 

  You may process pay runs for the new year before the STP finalisation of the prior year. 

• Create a new calendar year for HR Calendar and GL Calendar.

• Maintain HR, GL, and JC(if applicable) posting Periods for the new year and close HR posting period for year 2021-22

Verifying your software maintenance is up to date

You need a valid software maintenance to import tax scales for the new year.  Go to Menu Help > About to check the current maintenance expiry date. If it is expired or expiring soon, please check with your accounting team if the annual maintenance invoice (from MYOB) is paid. Contact your Greentree consultant if needed.

Changes on Superannuation

From 1 July 2022, 

• The SGC rate increases from 10% to 10.5%. 
• The 2022-23 maximum superannuation contribution base increases to $60,220.
• The $450 per month threshold for superannuation guarantee eligibility has been removed.

This can be manually maintained in HR Module Control:

• Go to menu HR > System > Module Control.
• Select the Payroll tab, then click the Super sub-tab.
• Add or update the following line.

Pay group maintenance

According to ATO, if salary and wages are accrued in the current financial year (prior to 30 June) but paid in the following financial year (on or after 1 July), the full amount of the payment will be taxed at the following financial year's tax rates and included in the following financial year's STP reporting. Please refer to ATO for more information on end of financial year payments to employees.  This also applies to superannuation.

Greentree uses the "Days from end of pay period" set in Pay Group Maintenance to calculate the expected payment date for each pay batch and apply the appropriate tax rate and super rate.  Go to menu HR > System > Payroll > Pay Group Maintenance, check and update this in each active pay group. 

Super guarantee transaction type

With SGC rate increase, the default rate set on Employer Super transaction type needs to be updated. To do this:

• Go to menu HR > System > Payroll > Transaction Type  > Employer Costs
• Pick up the super guarantee transaction type.
• Tick the "Default % based on expected payment date" option. 
• Add a new effective date of 1/7/2022 with the rate set to 10.5. 
• Save the changes.

Payroll tax transaction type

Payroll tax transaction types are not mandatory in each system. But if there are payroll tax transaction types already set up in your system and your payroll tax rate is changed from 1/7/2022, you can update the rates by: 

• Go to menu HR > System > Payroll > Transaction Type  > Employer Costs
• Pick up the payroll tax transaction type.
• Tick "Default % based on expected payment date" option. 
• Add a new effective date of 1/7/2022 with the new rate and annual threshold. 
• Save the changes.

Workcover transaction type

WorkCover transaction types are not mandatory in each system. But if there are workcover transaction types already set up in your system and your workcover rate is changed from 1/7/2022, you can update the rates by: 

• Go to menu HR > System > Payroll > Transaction Type  > Employer Costs
• Pick up the workcover transaction type.
• Tick the "Default % based on expected payment date" option. 
• Add a new effective date of 1/7/2022 with the new rate.
• Save the changes.

Importing new tax scales

You can load the updated tax tables at any time before the year-end. The new rates will only be applied to the whole pay with payment date on or after 1/7/2022. 
Save the file TaxScaleAustralia_2022_07_01.csv to your workstation.

Go to menu HR > System > Payroll > Transaction Type > Tax, pick up tax code C01, or any existing tax transaction type. Move the screen aside. You will refer to this screen in the next step. 

Go to menu HR > System > Payroll > Import/Export > Tax Scales Import. The screen displays as: 

Source File: Select the CSV tax tables file you saved to your workstation.

Authority: Set it to the same code as shown on the existing tax code. 

Accumulator: Set it to the same accumulator as shown on the existing tax code. 

Clearing Account: Set it to the same clearing account as shown on the existing tax code. 

Click OK. This message displays:

Click Yes to update the description on the Transaction Type with the description contained in the file.

After clicking either Yes or No, the message Import of Tax Scales completed successfully displays.

STP/PAYG configuration

STP Configuration, or Payment Summary Configuration if your system has not been upgraded for STP Phase 2, sets STP contact info as well as STP categories for each transaction type. Setting can be reviewed before final submission, via menu HR > System > Payroll > STP configuration or Payment summary configuration.

If a category was not configured properly before, correct it now. The next STP lodgments, including the STP finalisation, use the latest settings to report the YTD amounts to the ATO.