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Bookkeeping – June wages are paid in July – last pay of the year, in which year is it included if pay period crosses over June-July?
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Published on Thursday, 08 July 2021 09:27
Client question –
Quick question Paul. We have an employee paid fortnightly.
The next payment is to be made on 07/07. This includes the week 26/6 to 30/6. Does any of this have to be put through in EOFY? Or will it be first payment for New Financial Year on new tax tables?
Solution –
Payroll is always recorded as a cash payment in the accounts (that is, WHEN it is paid).
Regardless of what period it covers – it is WHEN it is paid that matters. So the pay run is not included in the previous tax year but in July the next financial year.
You can finish your payroll year, prepare the STP Finalisation/Payment Summaries – check you include in Gross Payments, any NEW payroll types/categories if you created any during the year
Then roll forward to new payroll year, and you can process the 7/7 payroll that covers end of June days and some of July days.
To confirm – see the ATO discussion here, and also, you can find information about end of year payments to employees on the ATO website.
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