PAYG Payment Summary Processing Overview

EOFY Payment Summary Process

To generate Payment Summaries for your employees, you must create a new Payment Summary Process for the year. To get started, follow the steps below.

1. Go to JCurve Payroll > PAYG Summaries > Payment Summary Process > New.

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Note: If you have NetSuite OneWorld then select the correct Subsidiary from the field. If you would like to consolidate multiple subsidiaries then you must select any additional subsidiaries in the Consolidated Subsidiaries list.

2. Select the correct tax Year (e.g. 2017). The Start Date and End Date fields will auto-complete - verify that these are correct.

3. Check/uncheck Restrict FBT by Threshold - default is checked.

Note: If checked, only FBT that exceeds the tax year FBT threshold will be automatically populated onto the payment summaries generated. You should uncheck this option if you are running an incomplete tax year in payroll and have not imported historic payslip details.

4. Check/uncheck Eligible for FBT Exemption - default is unchecked.

Note: Only check this option if you (the Payer) is eligible for exemption from fringe benefits tax as described under section 57A of the Fringe Benefits Tax Assessment Act 1986.

5. Enter the Authorised Person to be displayed on the Payment Summaries.

6. Enter the Branch Number to be displayed on the Payment Summaries.

7. Select a Print Date to be displayed on the Payment Summaries.

8. Click Save.

Note: If a Payment Summary Process already exists for the current Year/Company then you will get an error message similar to the one below.

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As per the above message, you will need to Rollback.

ATO Information & Links

Payment Summary Process

The Payment Summary Process performs a number of checks to ensure that your data is in order prior to generating Payment Summaries and distributing them. There are 3 main areas that may require your attention:

  • Incomplete Pay runs
  • Employee details
  • FBT records

Click on the Pre Checks tab and review each sub tab.

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Pay Runs and Employees that are considered correct/complete will not be displayed in the Pre Checks. Once you've finished checking all your Employees and Pay Runs, refresh the page and you should get a Pre Checks Complete message.

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 Pay Runs

Any Pay runs that have not been paid in full, will be picked up by the pre checks as potential issues. You should review each line to ensure that data is correct. 

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For each line:

  • Check the Payrun Status column.
  • Click the title of the Pay Run to open the Pay Run.
  • Use Rollback if required to remove any Pay Runs that should not be active (e.g. Pay Runs with test data.)

From a payrun, you can check the History Payroll History sub tab to help you identify any potential error messages.

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Employees

Any employees with potential issues will be picked up, review the list of employees and ensure each employee has the following:

  • First name & Last name
  • Complete Default Address (Address 1, Suburb, State and Postcode are required)
  • Tax File Number (TFN) entered
  • Correct Hire Date
  • Termination Date set (if applicable)

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If you have not been using ICS Payroll for the full financial year and have not imported/entered YTD information then we strongly recommend that you also Import YTD Data for your employees.

FBT Records

The Pre Checks helps you to identify any FBT Summary records that you've created for the selected financial year. You should review the list of records and if you need to record any additional FBT amounts for any employees then you should do that now. Use the link provided to add additional records.

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Once you've finished with the Pre Checks, click the Generate Payment Summaries button. This will result in the page refreshing and the generate/summarise process being backgrounded. Depending on the number of employees that you are generating payment summaries for, this process can take anywhere from 10 seconds to a few minutes. As per the info message, click the Refresh button to update the status.

Once complete, the Status of the Payment Summary Process will be ADJUST. At this step, you need to review the figures for each Payment Summary and if required, make any manual adjustments.

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What to review

All the Payment Summaries records generated are available under the Employee PAYG Summaries tab. From this tab you should review all the records and make any manual adjustments. We encourage you to:

Toggle the View drop down to display and check different information in the list (e.g. Address and Details Review, PR-PAYG Statement, PR-Highlight).

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  • Preview any PDFs of Payment Summaries by clicking on the name of Payment Summary and then clicking the Print Preview button.
  • Make manual adjustments to Payment Summaries. To do so:

Click Edit next to a Payment Summary.

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  • Review and make any manual adjustments.
  • Click Save and return to the Payment Summary Process record to continue reviewing other Payment Summaries.

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  • Check that Terminated employees:
    • Have 2 (two) Payment Summaries; and

That the Employment Termination Payment Code is correct on their Termination Payment Summary

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Complete Adjustments

Once you've completed reviewing the Payment Summaries and making any required manual adjustments - click the Adjustments Complete button and then click OK in the alert to confirm that you've completed any manual Payment Summary adjustments and that you now want to generate the PDFs for all Payment Summaries. 

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The PDF generation process will be performed in the background. Use the Refresh button to check on the status.

Password protection

If the payroll setup uses the password protect feature, the employee PDF Payment Summaries will be password protected using the same method. If no specific password field is set then the password will default to the employee's TFN.

Once the process has finished, the Payment Summary Process will have a status of REVIEW and a PDF of all the Payment Summaries will be available for download and review.

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Individual PDFs of the payment summaries are also available at this step.

Note: It is much easier to review the combined PDF than reviewing each one individually.

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Final review

Typically this is the last opportunity to review the Payment Summaries before you distribute them to your employees. Make sure you download the PDF and review it.

If you find any errors then you should Rollback and make the required changes.

Approve & Distribute

When ready, click the Approve & Distribute button. This Approval process will be performed in the background. Use the Refresh button to check on the status.

Once the process has finished, the Payment Summary Process will be COMPLETE. If you are using the Employee Self Service (ESS) features, then each Employee will now be able to log in to view and download their Payment Summary.

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Once you're at the COMPLETE stage of the Payment Summary Process, no further changes can be made and you can distribute your payment summaries.

Employee Self Service (ESS)

If your employees have access then they can already log in to view and download their Payment Summary. No further distribution steps are required.

Send via Email

To email the Payment Summaries to your employees, initiate the process by clicking the Email PAYG Summaries button.

On the next screen:

  1. Check the Email From field is set correctly.
  2. Make any adjustments you like to the Email Body field.
  3. Select the Employees to have their Payment Summaries emailed to them.
  4. Click the Email Summaries button.

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Test Email

To test the sending of Payment Summaries via email (I.e. email yourself instead of the employees), just enter an email address into the Test Recipient field. 

Print and distribute manually

If you'd like to distribute the Payment Summaries manually to your employees:

  1. Download and save (to your computer) the PAYG SUMMARIES PDF (combined PDF file)
  2. Print all the pages in the PDF
  3. Hand out/post to your employees

Alternatively, you can also download and print or email individual Payment Summaries.

The final step in the end of year process is to lodge your Payment Summary Annual Report (PSAR) file to the ATO. ICS Payroll can generate the file you need for the submission for you to then upload and lodge with the ATO via their Business Portal.

Important: The PSAR file was previously called EMPDUPE.

ATO Business Portal Prerequisites

You must submit your PSAR file using the ATO's Business Portal. To access the Business Portal (https://bp.ato.gov.au), you must either either use an AUSKey or have an ATO linked myGov account using Manage ABN Connections. For more information on:

Note: As of October 2016, the ATO has deprecated its ECI software. You cannot use the ECI software to submit your 2016/2017 PSAR file. You must use the Business Portal (https://bp.ato.gov.au)

Generating a PSAR file

To generate the Payment Summary Annual Report (PSAR) file:

From the Payment Summary Process record, initiate the process by clicking the Generate PSAR file button.

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  1. Review all fields as this information will be encoded in the PSAR file for you to then send to the ATO. You should pay special attention to the following fields:
    1. Amended Only? - check this to generate an Amended PSAR file that includes Amended Payment Summaries only.
    2. ABN - Australian Business Number.
    3. Name - Company name.
    4. Trading Name - Company's Trading name (if different).
    5. FBT Exempt - This field cannot be changed here as it is inherited from the Payment Summary Process record.

Once you've finished reviewing the fields click the Generate button.

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  1. You will be taken back to the Payment Summary Process record. You can now:
    1. Preview the PSAR file by clicking on the PSAR File Preview tab.

Download the PSAR file for upload to the ATO by clicking on one of the download links.

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Regenerating a PSAR file

You can regenerate a PSAR file by clicking the Regenerate PSAR file button on the Payment Summary Process record. The steps are the same as Generating a PSAR file as detailed above.

Each time you Regenerate a PSAR file, the new file will be highlighted and available for download. Previous versions are archived and only available for download from the Files tab.


Lodging PSAR file via Business Portal

Once you've sorted out your Business Portal login credentials and generated a PSAR file, you're ready to lodge it with the ATO. You can do this as follows:

  1. Navigate to the ATO Business Portal: https://bp.ato.gov.au

Click the Login link.

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In the pop up window, select your correct credentials (AUSKey or myGov) from the list.

  1. Login using the selected credentials
  2. Click the Lodge File link
  3. Upload and submit the PSAR file you downloaded to your computer.

 

RollBack

 

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You can use the Rollback button to roll back the Payment Summary Process to the previous stage. 

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In general, it is safe to use Rollback, however you should keep the following in mind when doing so:

  • You should not use Rollback if you've already lodged your Payment Summary Annual Report (PSAR) file with the ATO.
  • You do not need to use rollback to create Amended Payment Summaries. See Amending Payment Summaries for more information.
  • When rolling back to NEW, you will lose any manually adjustments you've made to the Payment Summaries.

 

Note: You can't simply change the information on a Payment Summary after you have distributed it to an employee or submitted your annual report (e.g. PSAR file) to the ATO.

The ATO provides specific instructions on what to do if you need to make changes: https://www.ato.gov.au/General/Correct-a-mistake-or-amend-a-return/Correct-excise-and-FBT-returns,-non-BAS-fuel-scheme-claims-and-PAYGW-payment-summaries/PAYG-withholding-payment-summaries/

If you've already distributed a Payment Summary or lodged your annual report with the ATO, you may need to create an Amended Payment Summary. See the ATO's website for specific guidelines on when you need to issue an Amended Payment Summary: https://www.ato.gov.au/General/Correct-a-mistake-or-amend-a-return/Correct-excise-and-FBT-returns,-non-BAS-fuel-scheme-claims-and-PAYGW-payment-summaries/PAYG-withholding-payment-summaries/

 

Amending a Payment Summary

To make an amendment to a Payment Summary (create a new Amended Payment Summary):

  1. Locate it and open it in VIEW mode. The quickest way of locating a payment summary, is either via the:
    1. Payment Summary Process record, under the Employee PAYG Summaries tab; or
    2. Employee record, under the Tax Info tab > Payment Summary sub tab.

Click the Amend button.

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  1. Click OK to the alert that pops up to confirm that you wish to amend the Payment Summary

Make any changes required, note that Is Amended is checked

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  1. Click Save.
  2. You should now review the Amended Payment Summary by clicking the Print Preview button.
    1. If you need to make additional changes then click Edit.

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Click the Print & Distribute button to generate a PDF of the amended Payment Summary and make it available to the employee via Employee Service Service (ESS).

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Amending Multiple Payment Summaries

If you need to amend multiple Payment Summaries then repeat the above steps for each Payment Summary

 

Distributing Amended Payment Summaries

You should have already clicked the Print & Distribute button on each Amended Payment Summary record. If you're using Employee Self Service (ESS) then it is already available to employees for download.

If you would like to print or email the Amended Payment Summary - click the relevant download link.

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Generating an Amended PSAR file

If you've issued amended Payment Summaries then you must lodge a report to the ATO that includes details of the amendments. To generate an amended PSAR file:

From the Payment Summary Process record, initiate the process by clicking the Regenerate PSAR file button.

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Check the Amended Only? field. This will result in only Amended Payment Summaries being included.

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  1. Review all other fields as this information will be encoded in the PSAR file for you to send to the ATO. 
  2. Once you've finished reviewing the fields click the Generate button.
  3. You will be taken back to the Payment Summary Process record.
    1. Note that the PSAR filename has the word "AMENDED" in it.
  4. You can now:
    1. Preview the amended PSAR file by clicking on the PSAR File Preview tab.

Download the amended PSAR file for upload to the ATO by clicking on one of the download links.

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To submit the amended PSAR file to the ATO, follow the instructions from previous section, Lodge PSAR file to ATO.

 

 

 

 

 

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