Payroll end of financial year troubleshooting
If you're having trouble using Xero payroll for end of financial year, use this page for quick answers to your questions.
How do I include June’s salary and wages in the current financial year, if we pay them in July?
The payment date of the pay run determines the reporting date, not the pay period end date.
To include June’s salary and wages in the current financial year, make sure the payment date is on, or before, 30 June.
How can I check if the general ledger doesn’t balance with payroll reports in Xero?
Xero’s payroll reports use the payment date of the pay run as a base. You can run a couple of different reports in Xero to check your general ledger against payroll.
Will Xero update with the latest legislation changes?
Yes. Xero updates its tax tables to reflect current ATO legislation. If there are any updates to the tax tables from 1 July, Xero automatically applies these changes to pay runs with payment dates on, or after, 1 July.
Do I have to start a new pay calendar for the new year?
No. All pay calendars run according to the frequency of the pay periods you have set up.
Do I have to rollover or close payroll at year end?
No. You can process pay runs as normal. The payment date in the pay run decides the financial year wages are reported in.
Will the payslip YTD earnings reset for the new financial year?
Yes. YTD earnings appear on employee’s payslips will reset to zero in the first pay run processed in the new financial year.
How do I record fringe benefits on payment summaries?
When Xero processes pre-tax deductions in payroll, these amounts reduce the gross wages on the payment summary at the end of the financial year.
If these amounts need coding as reportable fringe benefits on employee payment summaries, you can manually enter these amounts in the payment summaries screen.