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Income Tax Payers Summary

PAYG Payment Summaries / Group Certificates

Relevance Zone: Australia (AU)

If you are an employer you are required to submit a PAYG Payment Summary Statement each financial year or you can report this information electronically using the Australian Taxation Office’s Online Services or by sending CD’s to them. This Wizard allows you to prepare this information plus prepare PAYG Payment Summaries for employees.

Some friendly reminders

Before beginning the process of producing PAYG Payment Summary you might want to check a few things:

  • Completed all pays for the financial year for each employee.
  • Payroll summary reported in your BAS for the full year matches what you submitted to the ATO each quarter.
  • Employees details are current. Goto employees in the main menu to update them.
  • Ex employees have a termination date in their employee details area.
  • Your organisation details are current. Goto Settings > Main > Manage File Identity
  • That if you plan to use the ATO ECI software facility to submit PAYG Payment Summary information at Financial Year end that you have set it up, tested it and received your security key for access.
  • That you have the written approvals required when paying employees untaxed amounts. e.g. Allowances.

Which Method Are You Using?

1. Reports to the ATO electronically

This is for Printing plain paper PAYG Payment Summaries to give to your employees. You also produce an “EMPDUPE” file and send it to the ATO on electronic media such as a CD-ROM. Alternately, you can use the ATO’s Online Services such as ECI to submit information. You will need to have registered and have received your security key to use it so leave yourself plenty of time to meet deadlines.

2. Using the ATO supplied forms

The ATO or your Tax Accountant has sent you “PAYG Payment Summary - Individual Non Business” forms for you to fill in and give to your employees. They have also sent you a “PAYG Payment Summary Statement for year Ending 30 June 200X” for you to complete and return.

3. Tax Accountant reporting to the ATO electronically

For Tax Accountants who are preparing Plain Paper Payment Summaries using Saasu and Reporting electronically to the ATO using Saasu to create an EMPDUPE file.

Mapping the Payment Summary Fields to Your Pay Items

Payment summaries display total for pay items in specific fields in the form according to the laws and regulations for your industry and specific situation. We provide some default mappings but recommend that you seek advice from a registered tax agent or the ATO as to how these mappings should be for your business.

Verify the Payer (Employer) Details

The Payer is the Organisation who is issuing the Payment Summaries to their Employees. It is the Tax Entity who pays employees and withholds PAYG Withholding Tax on their payments.

The Payer Contact is the person who is preparing this PAYG Payment Summaries. It is a person whom the ATO can contact if they have any enquiries regarding the information provided.

Payer Organisation information on this screen

  • Organisation Name (required) - The Organisation (Tax Entity) who is employing and withholding tax for employees for whom you are issuing PAYG Payment Summaries.
  • Trading Name (required) - The name the “Organisation” trades as.
  • ABN (required) - The validity (not accuracy) of the ABN will be tested automatically.
  • ABN Branch - If you do not operate multiple branches in your business this will automatically be set to “1″. Otherwise input a branch number. If a business has one ABN but multiple branches, each branch will have an individual branch number.
  • Email Address - a general contact number for your organisation.
  • Street Address Line 1 (required) - If you have more than 3 lines for the Address field then you will need to select which you prefer to be the first line.
  • Street Address Line 2 - If you have more than 3 lines for the Address field then you will need to select which you prefer to be the second line.
  • City (required) - The City, Suburb or Town of residence for the organisation.
  • State (required) - Must be one off, ACT, NSW, NT, QLD, SA, TAS, VIC, WA, or OTH if your company is a non-resident of Australia.
  • Country (required if not Australia) - You may leave this field blank if your company is a resident in Australia.
  • Postcode (required) - A four digit postcode is only accepted. If you are from another country other than Australia it will Automatically be set to 9999.

Payer Contact information on this screen

  • Select a Contact for the ATO (required) - Choose a Contact for the ATO from your Contacts List. Usually an authorised representative allowed to communicate with the ATO on matters for this organisation.
  • First Name (required) - pre-set from the contact you have selected.
  • Last Name (required) - pre-set from the contact you have selected.
  • Phone (required) - pre-set from the contact you have selected. An Australian phone number is expected
  • Fax - pre-set from the contact you have selected

Verify Employee Details

The Employee is the person your organisation is issuing “PAYG Payment Summary - Individual Non-Business” forms to. They are Payees who you have recorded payroll transactions for this Financial Year.

Employee information on this screen

  • Employee Name (required) - First Name and Last Name are required in that order. Second name is optional. Include it in the First Name field if you wish to include it.
  • TFN (required) - The Employees Tax File Number that the employee provided your organisation when they completed their TFN Declaration form on entry to duty at your organisation. Saasu will check the validity but not accuracy of the TFN.
  • Street Address Line 1 (required) - If you have more than 3 lines for the Address field then you will need to select which you prefer to be the first line.
  • Street Address Line 1 - If you have more than 3 lines for the Address field then you will need to select which you prefer to be the second line.
  • City (required) - The City, Suburb or Town of residence for the employee (payee).
  • State (required) - Must be one off, ACT, NSW, NT, QLD, SA, TAS, VIC, WA, or OTH if the employee (payee) is a non-resident of Australia.
  • Postcode (required) - A four digit postcode is only accepted. If your employee (payee) is resident in another country other than Australia it will Automatically be set to 9999.
  • RFBA (required if it exceeds $1000) - Reportable Fringe Benefits Amount (’RFBA’) is to be completed if the total taxable value of certain fringe benefits provided to the employee (payee) in the FBT year (1 April to 31 March) exceeds $1000.

TFN for specific circumstances where your employee hasn’t provided a tax file number

  • 111 111 111 - if a new employee has not made a TFN Declaration, but 28 days have not passed.
  • 333 333 333 - the employee is under 18 years of age and earns $112 or less a week.
  • 444 444 444 - the employee is a Commonwealth Government pensioner payee.
  • 000 000 000 - if the payee chooses not to quote a TFN and has not claimed an exemption from quoting a TFN, or does not fit into any of the above categories.

Manual Forms

Completing the ATO forms and PAYG Statement

  1. Have a copy handy of the ATO’s PAYG Payment Summary - Individual Non Business Guidelines. They may also have mailed it to you.
  2. Ensure you have the correct ATO forms.
  3. Print out the Plain Paper PAYG Payment Summaries BUT DO NOT GIVE THESE TO EMPLOYEES. They will only be used to add information to the ATO forms.
  4. Transpose the information in the relevant sections from the PAYG Payment Summary - Individual Non Business printouts to your ATO forms.
  5. Using the information on this screen you will be able to fill in the PAYG Payment Summary Statement for Financial Year ending 30th June 20xx.
  6. Check and re-check your work as Payment Summaries cannot be re-issued.

Plain Paper Forms

Printing the Plain Paper PAYG Summaries to give to Employees and reporting this information to the ATO electronically.

VERY IMPORTANT NOTE:

You must use Payroll Transactions to enter your pay transactions. Any payroll transactions that have been entered using other transaction types will not be captured in PAYG Payment Summaries and accordingly they will be incorrect.

Print the employees PAYG Payment Summaries

  1. Click the “View/Print Employee PAYG Payment Summaries” link to load them into Adobe Acrobat Reader.
  2. Review each Payment Summary for each employee individually for accuracy. Note that the ATO requires that you to give every employee who has transactions in a payroll financial year a PAYG Payment Summary.
  3. Click the print icon to print these Payment Summaries to Plain Paper (Note: Do not use letterhead or coloured paper). You will need to give each employee 2 copies. 1 to keep for there records and the other to attach one there tax return for the ATO.
  4. Have the appropriate Authorised Signature sign each form after they have verified the information in them against any other Payroll reports and/or the totals on this Screen as required.

Getting Your Payment Summary Information to the ATO

Create and Save the EMPDUPE file by clicking the “Save EMPDUPE File to Send to ATO” link. Submit the file to the ATO by either:

  1. saving the file to disk or CD and sending to the ATO according to their instructions.
  2. use the ATO’s ECI software facility or online services to submit your EMPDUPE file. You will need to setup these up in advance if you haven’t already done so.