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A crucial part of wrapping up End of Financial Year is making sure that what you’re submitting to the ATO is actually what has been processed to the employee. If you generate payment summaries and an issue occurs after the fact, it can affect the employee, but it also means the business has to make corrections and amend payment summaries – which is quite a frustrating task and one that is avoidable if you follow the right steps.

Generating payment summaries can be painful if data is incorrect or missing, but if it’s done properly – everything else that follows will be a breeze in KeyPay. It will just be the case of clicking some buttons.

Top Tips for End of Year Reconciliation in KeyPay

  1. Check employees’ Tax File Numbers: if employee Tax File Numbers are stated as ‘111111111’, you should chase up the employees to get the correct data
  2. Check the Warnings tab on the Payment Summaries dashboard: if any data such as the address or Tax File Number is invalid, you can go to one spot to check those errors
  3. If you’ve joined KeyPay mid-Financial Year, make sure to import your YTD opening balances. This will enable one payment summary per employee and one lodgement to the ATO. If data is stored in your previous payroll system and you don’t bring it across to KeyPay, the employee will need to be issued 2 payment summaries.
  4. Check if employees have Fringe Benefits Tax that needs to be reported. Reportable FBT must be entered separately – it can’t be entered into a pay run so the employee’s payment summary will need to be edited to include that information in there.
  5. Make sure reportable employer super contributions are set up correctly. Read more on that here.
  6. Ensure pay category and deduction settings are properly configured so that they’re displayed correctly on the payment summary. Otherwise, this could have specific financial effects on the employee.

Reconciling the Payment Summary report to the Detailed Activity Report

Once you’ve made sure everything is in order, your next task is to download the Payment Summary excel report. Reconcile this report with the Detailed Activity Report generated for the financial year period. More details on that here.

We strongly suggest commencing the above process earlier rather than later. Fixing any configuration settings or invalid data now means you’ll have less reconciling to do after the final pay run of the financial year. It will be much less time consuming and you won’t be tearing your hair out.

Check out KeyPay’s Guide to End of Financial Year for more tips and tricks.

Stay tuned for more top tips during EOFY. As always, if you have any questions that haven’t been answered in this article, get in touch at

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KeyPay’s guide to End of Financial Year 2017/2018