Managing End of Year Reporting

This chapter discusses how to:

Set earnings and deduction categories.
Collect fringe benefit tax (FBT)-liable earnings.
Generate payment summary data.
Separate eligible termination payment data.
Generate the payment summary file for the Australian Tax Office (ATO).

Note. The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Australia. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 8.9 PeopleBook.

Setting Earnings and Deduction Categories

The categories determine where earnings and deductions appear on the payment summary. You categorize earnings and deductions by assigning a character value to the variable EOY VR CATEGORY on the Supporting Element Override page for a selected earnings or deduction.

Earnings and Deduction Category	EOY VR CATEGORY Value
Allowances	A
CDEP (Community Development Employment Project)	C
Reportable FBT	F
Gross Pay	G
Other Income	O
Total Tax Withheld	T
Union Fees	U
Lump Sum A Payments	LA
Lump Sum B Payments	LB
Lump Sum D Payments	LD
Lump Sum E Payments	LE
ETP Pre 83 Payments	E1
ETP Post 83 Payments	E4
ETP Post 94 Invalidity Payments	E3
ETP Withheld Tax	ET
Salary Sacrifice	SS
Charity Deduction	W

Collecting FBT-Liable Earnings

The ATO requires that you report FBT-liable earnings when the gross-up value (of all FBT-liable earnings) exceeds a minimum figure. To have the system calculate the reportable fringe benefits amount for inclusion on the payment summary, you run a collect process.

This section discusses how to:

Collect reportable FBT-liable earnings.
Enter manually calculated FBT-liable earnings and view calculated earnings.
Report FBT for terminated employees.

Summing Category F Earnings

Use the FBT Collection page (select Global Payroll & Absence Mgmt, Year-End Processing, Collect FBT Earns AUS) to set the parameters to have the system sum the net amounts of all earnings categorized as F (variable EOY VR CATEGORY) and gross them up. This is the same run control page—GPAU_RC_FBT_COLLEC—as used for Create Payment Summary. The difference is that this process uses the Application Engine program GPAU_FBT_COL and Create Payment Summary uses GPAU_PSM_CRE.

You need to enter the tax year and the population you are generating the data for. The population can be pay entity, paygroup, or payee.

The Update if Record Exists check box relates to the record values that appear on the Reportable FBT Earnings page. If you select this check box and the record exists (either because of a manual entry only—status Entered—or because you have run the collect process previously—status Created), rerunning the process updates the calculated amount only. It does not change any manual entry.

The process is Application Engine process GPAU_FBT_COL.

Note. You need to set up your FBT percent and minimum reportable FBT-liable earnings in Salary Packaging before you can run this process.

Page Used to View and Adjust FBT-Liable Earnings

Page Name	Object Name	Navigation	Usage
FBT Earnings	GPAU_EE_FBT	Global Payroll & Absence Mgmt, Year-End-Processing, Rvw/Update Payee FBT Earns AUS	View calculated amounts, add manual amounts, conditionally change the status, or view gross-up values. You view the calculated amounts after you have run the Collect Reportable FBT process.

Entering Manually Calculated FBT-Liable Earnings and Viewing Collected Earnings

Access the FBT Earnings page.

Status

You can change the status from Processed to Created but only if the status of the Payment Summary process is still Created (not Processed or Issued). You change it to rerun the collect process to repopulate the Collected FBT Amount field. The statuses are:

Entered: The page has had a manual entry only.

Created: The Collect Reportable FBT has been run (even if the process didn’t pick up any amount)

Processed: Payment summaries have been created and the FBT data included (if there was any).

Issued: Refers only to the Payment Summary processes.

Manual FBT Amount

This is for any manually calculated amounts. Any values entered here are not affected by rerunning the collect process, which updates only the Collected FBT Amount field. The system displays the gross-up value of the amount that you enter in the associated Gross Up field.

Collected FBT Amount

This is the result of the Collect Reportable FBT process (which may be 0.00). The system displays the gross-up value of the collected amount in the associated Gross Up field.

Total FBT Amount

This is the total of the gross-up amounts. If the amount exceeds the minimum FBT-liable earnings for payment summary reporting, it is reported on the employee’s payment summary and included in the electronic file submission to the ATO.

Date Time Stamp

This is the date and time that the page (record) was last updated—manually or by the process.

Reporting FBT for Terminated Employees

An employee might terminate employment between the end of the FBT year and the end of the corresponding tax year. If, during that period—April 1 to June 30—that employee received reportable FBT-liable earnings over the reportable limit, you need to process two FBT collections and two payment summaries. The first is for the tax year in which the employee terminated employment. The second is solely to report the FBT-liable earnings that would normally have been reported on the payment summary for the next tax year. The system retrieves the FBT-liable earnings even though there is no tax balance record for that next tax year.

In the following diagram, the position of PSM2 indicates the tax year to which the FBT belongs.

Indicating the FBT Tax Year

Generating Payment Summary Data

When data preparation is complete, you can generate the payment summary data for each employee. You can view the data before printing payment summaries for issue to payee’s.

After you have generated the payment summary data, you must print the payment summaries before you can create the electronic file for the ATO.

The system uses the data that the Application Engine program extracts for the following:

Printed payment summaries for employees.
The creation of the electronic file for the ATO.
The Payment Summary Exceptions and Payment Summary Reconciliation reports.

This section discusses how to:

View payment summary data.
Generate the payment summary ATO file.
Print the payment summary.

Note. The system only includes FBT in the payment summary if its gross-up value exceeds the PeopleSoft-maintained minimum amount. You can see the minimum amount on the FBT/GST Rate page.

Pages Used to Generate/View Payment Summary Data

Page Name	Object Name	Navigation	Usage
Collect FBT Earns AUS	GPAU_RC_FBT_COLLEC	Global Payroll & Absence Mgmt, Year-End-Processing, Collect FBT Earns AUS	Enter the tax year and the payee population, which can be Pay Entity, Pay Group, or Payee. There is an Update if Record Exists check box. If you have already run the process, (and the payment summary status Created), this process overwrites the stored values in the record. The process is Application Engine process GPAU_FBT_COL.
Rvw/Update Payee FBT Earns AUS	GPAU_EE_FBT	Global Payroll & Absence Mgmt, Year-End-Processing, Rvw/Update Payee FBT Earns AUS	View the results of running the Collect FBT Earns AUS report.
Create Pmnt Summary Data AUS	GPAU_RC_FBT_COLLEC	Global Payroll & Absence Mgmt, Year-End-Processing, Create Pmnt Summary Data AUS	This process generates a payee's payment summary information. Enter the tax year and the payee population, which can be pay entity, paygroup, or payee. The process is Application Engine process GPAU_PSM_CRE.
Review Payment Summary Data	GPAU_EE_PSM	Global Payroll & Absence Mgmt, Year-End Processing, Review Pmnt Summary Data AUS	View the results of running the Create Payroll Summary process.
Payment Summary Exceptions AUS	GPAU_RC_PSM_EXCPT	Global Payroll & Absence Mgmt, Year-End-Processing, Payment Summary Exceptions AUS	This process generates the Payment Summary Exceptions report. This report is used to list discrepancies between YTD amounts and actual results per period.
Payment Summary Reconcile AUS	GPAU_RC_PSM_RECON	Global Payroll & Absence Mgmt, Year-End-Processing, Payment Summary Reconcile AUS	Generates the Payment Summary Reconciliation Report. It reconciles all of the amounts reported in the online payment summary panels. There are 3 separate sections, one for employees, one for contractors with ABN and one for contractors with no ABN, as well as the company totals.
Payment Summary/ETP Certificates	GPAU_RC_PSM_PRINT	Global Payroll & Absence Mgmt, Year-End Processing, Payment Summary/ETP Certs AUS	Set the parameters to print payment summaries and/or ETP Certificates for payees or groups of payees.
Create Payment Summary Electronic File	GPAU_RC_PSM_ELEC	Global Payroll & Absence Mgmt, Year-End-Processing, Create Pmnt Summ Elec File AUS	Set the parameters for the generation of the electronic file to the ATO.

Viewing Payment Summary Data

Access the Payment Summary page.

After running the Create Payment Summary Data process for the tax year and payee population that you select, you can view the results. The EOY VR CATEGORY Supporting Element Override value that you set for each earnings and deduction dictates in which total their values are included. The display is by employee name and ID, pay entity, balance group ID, and tax year.

Payment Period	For normal end-of-tax-year processing, this shows 01/07/YY - 1 to 30/06/YY. For terminated employees, it shows 01/07/YY - 1 to termination date. For hired employees, it shows hire date to 30/06/YY.
Tax Withheld	Total of all category T deductions.
Gross Payments	Total of all category G earnings.
CDEP Salary and Wages	Total of all category C earnings.
Other Income	Total of all category O earnings.
Allowances	Total of all category A earnings. If there are more than four allowances, three are listed alphabetically. The fourth field displays the total for the other allowances.
Total Allowances	Total of 1-4 (where 4 might be the subtotal of the other allowances.)
Lump Sum (A, B, D and E)	All earnings of category LA, LB, LD, and LE, respectively.
Union Fees	All deductions of category U.
Workplace Giving	Total of all workplace giving.

Note. Lump Sum C earnings don’t appear, because Lump Sum C ETPs are extracted and reported separately.

Printing the Payment Summary

When all your data is correct, you can use the Payment Summary/ETP Certs page to print either or both of the two variations of the payment summary and any ETP certificates the system generated during the Create Payment Summary process.

Note. After you have generated the payment summary data, you must print the payment summaries before you can create the electronic file for the ATO.

Separating Eligible Termination Payment Data

If the system detects Lump Sum C ETPs during the Create Payment Summary process, it stores the data separately.

Page Used to View ETP Data

Page Name	Object Name	Navigation	Usage
Review/Update ETP Data	GPAU_EE_ETP	Global Payroll & Absence Mgmt, Year-End-Processing, Review/Update ETP Data AUS	View the breakup of Lump Sum C ETP payments by employee name and ID, Pay Entity, Balance Group ID and Tax Year.

Viewing Eligible Termination Payment Data

Access the ETP Certificate page.

You can print ETP certificates using the ETP Payment Summary printing option on the Print Payments Summary page.

Status

Values are:

Created: The Create Payment Summary process has been run.

Issued: The ETP certificate has been printed. You can change the status from Issued to Created to regenerate the data through the Create Payment Summary process.

Entered and Processed: These are not applicable statuses for ETP certificates.

Payment Date

The date that the ETP was made. The date appears by default as the payment check date of the employee's last pay.

Eligible Service Period

Date Started

The payee’s hire date.

Days before 1 July 1983

If the hire date is before July 1, 1983, this is the difference between the hire date and July 1, 1983.

Days after 30 June 1983

If the hire date is on or before June 30, 1983, this is the difference between June 30, 1983 and the termination date.

If the hire date is after June 30, 1983, this is the difference between hire date and termination.

ETP Components

ETP Pre-July (X)	System-calculated based on the Days before 1 July 1983 result.
ETP Post-June 83 Untaxed (Y)	System-calculated based on the Days after 30 June 1983 result.
ETP Post-June 83 Taxed	System-calculated based on the Days after 30 June 1983 result.
ETP Post-June 94 Invalidity (Z)	System-calculated based on any post June 1994 invalidity payments made.
ETP Gross Amount	Sum of X, Y, and Z
Tax Withheld	Tax deducted from ETP.
Assessable Amount	If the Death Benefit check box is selected, the assessable amount is 0.00. Otherwise, it is based on the following formula: (0.05 × ETP Pre-July 83) + ETP Post-June 83 Untaxed or (0.05 × X) + Y

Generating the Payment Summary File for the ATO

Access the PSM - Electronic page.

Note. After you have generated the payment summary data, you must print the payment summaries before you can create the electronic file for the ATO.

The ATO requires an electronic file containing all the data that the system has extracted for payment summaries and ETP certificates. You can create a single file for multiple pay entities. The ATO also requires two separate files: one for regular payees and one for contractors who do not have an ABN. The file contains software information, payer information such as ABN and contact details, and payee information such as the tax file number, gross payment, and withheld tax.

The file is created by Application Engine program GPAU_PSM_ELEC. This program uses data extracted by the Application Engine program that created the payment summary.

Before you remit payment summary information electronically to the ATO or distribute printed summaries to your payees, you can use the Payroll Summary Exceptions and Payment Summary Reconciliation reports to check the data extracted by the Application Engine program.

Run Type

Production or Test

Select Test when preparing a file to send to the ATO for validity testing. Ensure that a test submission can never be mistaken for production data.

Magnetic Media Type

PAYG Payment Summary	Select to produce a file of data for regular payees.
PAYG Withholding with No ABN	Select to produce a file of data for contractor payees who do not have an ABN.

Pay Entity List

Pay Entity

Select as many pay entities as you want to include in the file.

Status	You can change the status from Processed to Created but only if the status of the Payment Summary process is still Created (not Processed or Issued). You change it to rerun the collect process to repopulate the Collected FBT Amount field. The statuses are: Entered: The page has had a manual entry only. Created: The Collect Reportable FBT has been run (even if the process didn’t pick up any amount) Processed: Payment summaries have been created and the FBT data included (if there was any). Issued: Refers only to the Payment Summary processes.
Manual FBT Amount	This is for any manually calculated amounts. Any values entered here are not affected by rerunning the collect process, which updates only the Collected FBT Amount field. The system displays the gross-up value of the amount that you enter in the associated Gross Up field.
Collected FBT Amount	This is the result of the Collect Reportable FBT process (which may be 0.00). The system displays the gross-up value of the collected amount in the associated Gross Up field.
Total FBT Amount	This is the total of the gross-up amounts. If the amount exceeds the minimum FBT-liable earnings for payment summary reporting, it is reported on the employee’s payment summary and included in the electronic file submission to the ATO.
Date Time Stamp	This is the date and time that the page (record) was last updated—manually or by the process.