Frequently Asked Questions
Question: End of Year Process of Payment Summary, Magnetic Media form and EMPDUPE file creation.
It’s the end of the financial year and I need to print the employee’s Payment Summaries and send my EMPDUPE file to the ATO, what do I have to do?
Solution:
QuickBooks is only designed to print Payment Summaries on plain paper which is not an accepted format. The ATO accepts Payment Summaries via two methods:
- QuickBooks Electronic file (Empdupe)
- Print out using ATO provided stationery
Note: You will need to hand write the Contact Name (Payroll) when printing out payment summaries.
The ATO has specified a new format for the INB payment summary for pays from July 1, 2007 and beyond with the new payment summaries there is no longer a need for a separate payee’s tax return copy. Only one copy is given to each employee and the employee keeps this for their own records. There is also no longer a need for a separate Notice to payee.
QuickBooks can create the EMPDUPE file an employer is required to send to the ATO.
To do this;
1) Go to the ‘Employees Navigator’ and select ‘Process Payment Summaries’.
2) Tick the employees a payment summary needs to be created for.
3) Click on the ‘Electronic File’ button.
4) In the ‘Save In’ screen choose a location to save the file and click ‘Save’.
Along with this file you must also submit the “Magnetic Media Information” form, you can obtain a copy from the ATO website at: http://www.ato.gov.au/content/downloads/MAGMEDIAINFOPay.pdf
Question: I have entered a FBT amount and it is not showing on my Payment Summary for the financial year, I use QuickBooks QBi.
How do I report a FBT amount on my Payment Summary, I use QuickBooks QBi 2009 or higher?
Solution:
The FBT year is the 12 months beginning 1 April and ending 31 March.
Example:
To report FBT for the 2009/10 financial year, the FBT should be entered between the 1 April 2009 and 31 March 2010.
Setting up the item:
Go to the Payroll Item List and select New. Follow the prompts at each window, as described below.
- Payroll Item Type:
Choose the Company Contribution item type. - Name Used In Payments & Payroll Reports:
Select a suitable name (e.g. FBT). - Agency for company-paid liability:
Select the Agency, Liability and Expense accounts that you would use for FBT. - Tax Tracking Type:
This needs to be assigned to Reportable Fringe Benefits. QuickBooks will now show all amounts assigned to this item under the Reportable Fringe Benefits section of the employee’s INB Payment Summary. - Taxes:
Untick PAYG so that PAYG tax isn’t calculated on the FBT item. - Calculate Based On Quantity:
Select Neither. - Gross vs Net Window:
Leave the Gross Pay radio button selected. Note that any selection in this window is not relevant as the FBT amount will be manually recorded. - Default Rate & Limit:
Leave both of these fields blank, you will be manually entering the FBT amount when Processing the pay.
Once the FBT item has been set up you can select it on an Employee Pay make sure you enter the pay sometime before the end of March to reflect on this financial year.
