Prepare and distribute employee payment summaries

Xero automatically prepares your employee's individual, non-business payment summaries. Review and finalise the totals before you send these as annual reports to the ATO.

How it works

  • You can review and finalise individual, non-business payment summaries within Xero before sending them to the ATO.
  • Pre-tax deductions reduce gross wages on the payment summary at the end of each financial year. You can add these if they need to be reported as reportable fringe benefits in the employee payment summary. If employee FBTs exist, you can edit these when you review the payment summary.
  • If your employee has a Working Holiday Maker status, their payment summary will display their income status type as 'H'. Payment summaries for other employee types will display as 'S'.
  • As well as individual, non-business payment summaries, you can:
Through Xero, you'll soon be able to generate an EMPDUPE file to lodge ETP summaries with the ATO. In the meantime, you'll need to manually report ETPs to the ATO. See PAYG payment summary statement (ATO website).

Prepare individual, non-business payment summaries

  1. Verify payroll data matches the general ledger.
  2. In the Payroll menu, select Employees, then click Payment Summaries.
  3. Review your organisation name, ABN and postal address and change basic organisation settings if needed.
  4. Enter the signatory name and add the contact number.
  5. (Optional) Under FBT Exemption, select the checkbox if you want to enter exempt and non-exempt, reportable fringe benefit taxes (RFBT) for each employee.
  6. Click Confirm and Continue, and then click Financial Year Ending.
  7. Review gross payments, PAYG, Total Allowance, RFBA, Workplace Giving, Union or Association Fees, RESC and Lump Sum amounts for each employee.
  8. Identify and fix payment summary errors.
  9. Enter any RFBA amounts from your fringe benefits tax return for each employee.
  10. Enter any Lump Sum amounts.

    This reduces your employee’s gross wages to ensure amounts aren't duplicated.

  11. Select the checkboxes next to all employees, and click Publish.
  12. Review the Status column for all employees in the payment summary table:
    • The tick icon This tick means the payment summary is published. shows the payment summary is published and ready to submit to the ATO.
    • The clock icon This clock means the payment summary is not published. shows employees with unpublished payment summaries. Identify and fix payment summary errors, then republish.
  13. Send a payment summary to each of your employees by email using My Payroll, or as a printed PDF.
  14. Submit payment summary report to the ATO.

Manually produce payment summaries

You need to manually produce payment summaries for Labour Hire and ETPs (other than Type R and O).

  1. Run one of the following summary reports:
  2. Report the payment summaries to the ATO. See PAYG payment summary statement (ATO website).

Note: In the Payroll Activity Summary report, you'll see the ETP amounts after tax and fees are taken out.

You might also be interested in