Identify and fix payment summary errors

Identify and correct payment summary errors so that pay items are recorded correctly in your payroll.

Payment summaries are automatically updated so it's important that all pay items are entered correctly. This ensures that the payment summaries are updated accurately.

Unpublish payment summaries

If mistakes are found in a payment summary, you must first unlock the payroll data by 'unpublishing' the published summary.

  1. Go to Payroll, then click Employees.
  2. Click Payment Summaries, then click Confirm and Continue.
  3. Select the employee(s) whose details you need to correct.
  4. Click Unpublish.
  5. Click Unpublish to confirm.

Identify and fix errors

Once you've unpublished the payment summary, you need to find and fix the mistakes. The most common mistake people want to correct is when amounts have not been reported where expected.

If you make a change to a deduction category, Xero automatically applies the change to all pays unless the payment summaries have been published. Before making changes to the deduction category, you need to unpublish any related payment summaries.

Correct the amounts:

  • Allowances & gross wages
  • When the earnings type is set to Allowance, allowance amounts are automatically applied to the payment summary. You might find amounts included under Allowances should be included under Gross Wages (or vice versa).

    1. Once you have identified the error being incorrectly reported:

      1. If the correction is to report an amount as an allowance, create a new earnings rate of the type Allowance.
      2. If the correction is to report an amount as gross wages, select Ordinary Time Earnings.

        Add, edit or delete pay items

    2. You may want to rename the original earnings rate so you don't accidentally use this going forward.

      Don't change the earnings type of the original pay items. This will only change the reporting of the pay item from the next time the pay item is used. Previously posted pay runs will not change.
    3. If you've added a new earnings rate:

      1. Run a Transaction Listing Summary report for the employee to help identify total amounts to reverse.

        Transaction Listing Summary

      2. Reverse any amount to the earnings rate that you have processed incorrectly and re-enter them using the new earnings rate created.

        Process an unscheduled pay run

  • RESC
  • When the superannuation line contribution type is set to Additional Employer Contribution (RESC) or Pre-Tax Voluntary Contribution (RESC), RESC amounts are automatically applied to the payment summary.

    If you find that employee RESC amounts are not being included at the RESC field, you may have processed superannuation contributions as a deduction rather than a superannuation line (RESC).

    1. Run a Transaction Listing Summary report for the employee to help identify total amounts to reverse.

      Transaction Listing Summary

    2. Reverse any amount to the deduction rate that you have processed incorrectly and re-enter them using a super line. Make sure you select the contribution type 'Pre-Tax Voluntary Contribution (RESC)'.

      Process an unscheduled pay run

  • Workplace giving or union fees
  • When the deduction category is set to Workplace Giving or Union/Association Fees, workplace giving amounts or union fee amounts are automatically applied to the payment summary.

    If you find that amounts for deductions such as Workplace Giving or Union Fees are missing, check the deduction pay items to make sure that the deduction category is applied correctly:

      • None: will not be reported on the payment summary.
      • Workplace Giving: will be reported on the Payment Summary Workplace Giving field.
      • Union Fees: will be reported on the Payment Summary Union and Association Fees fields.

    Add, edit or delete pay items

  • RFBA or lump sum
  • Edit the values against each employee as required in the payment summary review screen.

Once the amounts are correct:

Republish payment summaries

Once you've corrected the mistakes, you need to republish the payment summaries.

  1. Go to Payroll, then click Employees.
  2. Click Payment Summaries, then click Confirm and Continue.
  3. Ensure that the checkboxes for the employees whose summaries have been corrected are selected.
  4. Click Publish.
  5. Select Yes to produce an amended payment summary.
  6. Click Publish to confirm. The summaries will be updated in each employee's 'My Payroll'.

Resend payment summaries

Once you've republished corrected payment summaries, you must resend them to the relevant employees.

You can publish and resend a payment summary at any time during the year. All summaries must be published and distributed as part of the end of year payroll process.
  1. From the Payment Summaries screen, select the employee(s).
  2. Click Send to Employee.

Manually produce payment summaries

Business and personal services income payment summary (labour hire)

You need to manually produce business and personal services income payment summaries for employees whose Employment Basis is set as Labour Hire (within the Taxes tab).

  1. Run the Payroll Employee Summary report to get the figures.

    Payroll Employee Summary report

  2. Refer to the ATO website for more information:

    How to complete the PAYG payment summary - business and personal services income form

Employment Termination Payments payment summary

You need to manually produce Employment Termination Payments (ETP) payment summaries for employees that are paid ETP.

Manually produce payment summaries