Your Payroll Year End team
Frequently asked questions about Payroll Year End
What is involved in payroll year end in Australia?
Payroll year end requires several steps before you can finalise STP with the ATO. You need to reconcile your total PAYG withholding against the amounts reported on your Business Activity Statements for the year, verify that all superannuation contributions have been paid and reported for the final quarter, confirm leave balances in Xero match actual entitlements, check that all employee details are current including tax file numbers and super fund choices, resolve any STP reporting discrepancies, and then submit the STP finalisation through Xero by the 14 July deadline
When do new award rates take effect in Australia?
The Fair Work Commission announces new minimum wage and modern award pay rates in its Annual Wage Review, typically in June each year. New rates take effect on the first full pay period on or after 1 July. You must update pay rates in Xero before processing the first pay run that falls in the new financial year. Failing to update rates means every affected employee is underpaid from the first pay period - and that underpayment compounds with every subsequent pay run until corrected
What is the PAYG withholding reconciliation?
PAYG withholding reconciliation compares the total tax you withheld from employee wages during the financial year against the total you reported to the ATO on your Business Activity Statements. These two figures must match. If the total PAYG withheld in your Xero pay runs differs from what you reported on your BAS, you have a discrepancy that needs resolving before you finalise STP. Common causes include manual BAS adjustments, payroll corrections that were not reflected in the BAS, or timing differences between pay periods and BAS quarters
Can you help with payroll year end?
Yes. We handle the entire payroll year end process in Xero: reconciling PAYG withholding against your BAS, verifying leave balances, confirming superannuation is fully paid for the final quarter, resolving any STP discrepancies, updating pay rates for the new financial year, and lodging the STP finalisation with the ATO by 14 July. If your payroll has existing errors, we identify and fix them as part of the process so your finalisation data is accurate