At the end of the payroll year (EOPY), all you need to do is finish paying your employees for the year, check your payroll data and finalise with the ATO.
Remember, you need to finalise your payroll information before the ATO deadline, which is typically July 14.
Enter all pays up to 30 June and report them to the ATO. If a pay period includes dates in June and July, the date it's paid determines which payroll year it belongs to.
Go to the Payroll menu > Create pay run.
Choose the Pay cycle, pay dates and click Next.
The Date of payment determines which payroll year the pay belongs to, even if the pay period has dates in June and July. Pays dated 30 June or earlier will be included in the finalised year.
In the list of employees, select those to be paid and click Next.
Review the pays and click Record. Complete the pays as normal.
If you've finished all your pay runs, go to the next End of payroll year task.
There are some key reports you should run to make sure your payroll data is accurate.
Before doing the first pay in the new payroll year – make sure the Payroll register and Payroll activity reports match. Here are more details about running these reports and what to do if they don't match.
Go to the Payroll menu > Single Touch Payroll reporting.
Click the EOFY finalisation tab and choose the Payroll year you're finalising.
Select each employee you want to finalise and click Finalise and notify the ATO.
Once you've finalised, your employees will be able to log into my.GOV to complete their annual tax returns.
To retain your own copy of your payroll data for the year, use a report pack. This generates a set of key payroll reports for the finalised year. We recommend saving these reports as a point-in-time record of your payroll data for the whole payroll year.
What happens now?
That's it – you're done for another year! No need to prepare payment summaries (STP replaces the need to do this), and the 1 July tax tables have been downloaded for you, ready to use. Also, the super guarantee rate increases to 11% on 1 July 2023, but we have you covered – find out how to automatically stay compliant with your superannuation obligations.
See you in 12 months...
You can set up a report pack containing key EOPY reports. Once you've set it up, you can generate all your EOPY reports at once – with just a few clicks. And you can re-use the report pack to generate the same group of reports each year.
Start by creating a report pack template. You only need to do this once to select the reports to include in the template. Here are the reports to include, as they appear when creating the template:
Payroll register summary
Payroll register detail
Accrual by fund summary
Accrual by fund (detail) summary
Superannuation payments detail
Superannuation payments summary
Leave balance (detail) summary
Leave balance (detail) detail
Then, at the end of each payroll year:
Create a report pack using the template you've created. This is where you set the date range for the reports, which will be 1 July to 30 June for the payroll year you're reporting on.
Download the report pack to create a PDF containing each of the EOPY reports.
Yes, you can record a pay in July before finalising - BUT FIRST make sure you've compared your payroll reports to identify and fix any discrepancies. Then, you can record a pay with a July Date of payment before finalising.
Because the July pay is dated in the new payroll year, it won't be included in the payroll year you're yet to finalise.