As the financial year draws to a close, ensuring a smooth and precise transition into the new fiscal period becomes paramount. In this guide, we aim to tackle common challenges encountered during the EOFY (End of Financial Year) process and offer practical solutions to guide you through them. By following to these recommendations, you can streamline your EOFY procedures, mitigate potential discrepancies, and facilitate an accurate transition with exact financial reporting.
If an employee has been terminated and finalized in a pay event within the financial year, they may not be visible in the finalization events.
If you need to include Reportable Fringe Benefits via STP (Single Touch Payroll) for such employees, you must either complete it in an update event by adding the relevant amounts, or utilize an amended finalization event. Further information can be found here.
The conclusion of each financial year necessitates a Finalization or Amended Finalization Event, as this action establishes the Tax Ready Status with the ATO.
If you have conducted a Finalization Event followed by an Update Event, the Tax Ready status of your employees may have been affected.
Consequently, you will need to generate and lodge an amended finalization event to fulfill your EOFY requirements.