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Re: pay period that falls over FY19 and FY20 - how does this impact payment summaries/group certs?

Newbie

Views 9651

Replies 9

If a companies last pay period for the fin year runs from 27th June to 10th July which means it crosses over two financial years. What out of this particular pay period is counted in a group cert/payment summary for FY19 vs FY20?

  • Does the whole amount get counted in FY20 group certificate?
  • Does the whole amount get counted in FY19 group certificate?
  • Or do the 27th, 28th, 29th and 30th June days get counted in FY19 group certificate and the remainder in FY20 group certificate
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

Former Community Support

Replies 6

Hi @Naomi,

 

Welcome to our Community!

 

@macfanboy and @PocketRocket88 have provided the correct information - end of financial year payment are based on when the payment is made. If payment is being made by EFT it's the date stipulated the electronic transaction or the date which is intended to be made into the bank account.

 

If you have further questions you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

9 REPLIES 9

Taxicorn

Replies 0

The whole amount goes to the 2020 tax year.

 

It is when you are paid that counts.

 

Enthusiast

Replies 0

macfanboy is correct Smiley Happy it would all fall into the 2020 FY reporting as it goes by payment date, not the date the work was performed.
 

https://www.ato.gov.au/Business/PAYG-withholding/PAYG-payment-summaries/#Endoffinancialyearpaymentst...

 

 

Most helpful response

ATO Certified Response

Former Community Support

Replies 6

Hi @Naomi,

 

Welcome to our Community!

 

@macfanboy and @PocketRocket88 have provided the correct information - end of financial year payment are based on when the payment is made. If payment is being made by EFT it's the date stipulated the electronic transaction or the date which is intended to be made into the bank account.

 

If you have further questions you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

Initiate

Replies 5

Hi Jodie,

If the official pay date is the 01 July 2021, however we are instructing the bank to release funds on the 30 June 2021 to ensure all employees are paid by the official pay date (These days it would seem most employees would receive their pay on the same date it leaves the bank, one day earlier then the offical pay date).


Does this mean even though the official pay date is the 01 July 2020 the pay period should still be included in the 20/21 FY as the instructed date is the 30 June 2021?


Cheers,

ATO Community Support

Replies 4

Hello @MRlimited

 

Most employers instruct their financial institution to release funds the day before the official pay date to ensure employees receive their pay on time.

 

The processing times vary between financial institutions which may result in some employees receiving the pay in their account before the official pay date.

 

Even if this is the case, you would still report the official pay date to the ATO as 01/07/2020 which falls within the 2021 financial year, and the employees would report the pay in their 2021 tax return.

 

Hope this helps Smiley Happy

 

TonyATO

Initiate

Replies 1

Hi Tony, thanks for your very helpful response.

 

Sorry to be pedantic by the 2021 financial year, you mean FY that crosses over 2021/2022. So if the official pay date is 01/07/2021 that pay period should be reported in the 2021/2022 FY?

 

Thanks again.

 

Mark

ATO Community Support

Replies 0

Hello @MRlimited

 

Yes you are correct.

 

Just to clarify:

If the official pay date is 01/07/2021, this would fall within 2022 financial year.

 

If the official pay date was 01/07/2020, it would fall within 2021 financial year.

 

Sorry about the error. I have now edited my previous response Smiley Happy

Newbie

Replies 1

Hi there,

 

Our pay period for the end of FY 21/22 falls from 19/6/22 to 2/7/22, with payday on 30/6/22.

In this case, is it still based on the payment date, ie 30/6/22, which would mean that this pay period falls within FY 21/22? (Or because the pay period ends on 2/7/22, does it then fall into the new FY 22/23?)

 

Thanks in advance!

ATO Community Support

Replies 0

Hi @payrollbc

 

If the payees payslips indicate the pay date is 30/6/22 then it will count in 21/22FY. If their pay slips indicate the official pay date is in July 22 then it will count towards 22/23FY even though you release the funds earlier on the 30th.