Payday Filing is used to generate payday files for the Inland Revenue Department (IRD) each pay. You should balance your Payroll Report values to the data that has been submitted through MyIR to the IRD. If these balance, you can proceed with the Change Tax Year process.
For more information on the end of financial year for New Zealand:
To balance at End of Year, you can compare the Reconciliation Report with the Payroll Report, watch the video or follow the steps below:
Reconciliation Report
Go to Payroll, Reports, End of Year, Reconciliation Report.
Select all Payroll Companies, Locations and Employees.
Select the current Financial Year.
Produce the report and save or print a copy. Record the values in the table below for:
Gross Earnings
Tax
Student Loan
Child Support
KiwiSaver Deduction (Employee)
KiwiSaver Contribution (Employer)
Payroll Report
Next, go to Payroll, Reports, Transactions, Payroll Report.
Select all Payroll Companies, Locations, Location Groups and Pay Frequencies.
Ensure that Print Year to Date Cumulatives is ticked and that the Date range includes all Period End Dates in the financial year.
Under Totals Options, tick Show Reports Totals.
Tick Include Employees not Paid, Include Terminated Employees and Show Employee Additions / Deductions under the Display Options.
Produce the report and save or print a copy. Record the values in the table below for:
Gross Taxable Total
Tax (Incl Adjustment)
Total for all Child Support Deductions
Total for all KiwiSaver Deductions
Employee Enquiries
Go to Payroll, Enquiries, Employee Enquiries.
Untick Include Unprocessed Transactions and Single Employee.
Enter the Date Range from the first pay in the Financial Year to the last pay in the Financial Year.
Click View.
Filter the Description column on Payroll Giving Tax Credit Value.
Use Save Grid to export the data to Excel.
Total the Amount column in Excel and record it in the table below.
Additions and Deductions Report (Optional)
If you don't want to total the Child Support and KiwiSaver Deductions from the Payroll Report, you can use the Additions and Deductions Report as an alternative.
Go to Payroll, Reports, End of Pay, Additions and Deductions Report.
In the Additions and Deductions field, select the Child Support Deductions.
Ensure that the Year to Date dates are from the first pay in the Financial Year to the last pay in the Financial Year.
Produce the Report and record the total for all Child Support Deductions in the table below.
Repeat steps 2-4 for the KiwiSaver Deductions.
IQB-ESCT01 - ESCT Details IQ
Go to Common, IQ
Double click on IQB-ESCT01 - ESCT Details.
Enter 1 for Include Terminated. This will include Terminated Employees in the data.
Enter the first and last period end dates for the Financial Year as Period End Date From and Period End Date To.
Click OK to run the report.
Filter Funds to exclude any Complying Funds.
Use Save Grid to export the data to Excel.
Total the EMS Contribution Amount column in Excel and record it in the table below.
Balance Reconciliation Report to the Payroll Report
| Reconciliation Report | Payroll Report |
|
Gross Earnings |
|
| Gross Taxable |
|
|
|
|
Tax Amount |
|
| Tax (Incl Adjustment) |
+ Student Loan |
|
|
|
- Payroll Giving Tax Credit (from Employee Enquiries) |
|
|
|
|
|
|
|
Child Support |
|
| Total Child Support |
|
|
|
|
KiwiSaver Deductions |
|
| Total KiwiSaver Deductions |
|
|
|
|
KiwiSaver Employer Contribution |
|
| EMS Contribution Amount (from IQB-EST01) |
If you don't balance, check the following:
Ensure you have included the correct parameters in the Payroll Report and Reconciliation Report as per the above.
Ensure that there aren't any outstanding Pay Day Files that haven't been produced in MicrOpay. The Reconciliation Report will only include pays where the Pay Day Filing has been processed.
If your business started using MicrOpay during the Financial year, not all pays may have been included in Pay Day Filing.
Transaction Adjustments are excluded from Pay Day filing which means that the values will be included in the Payroll Report but excluded from the ESCT IQ reports and the Reconciliation Report. You can use the guide below and the IQ report to find non-generated payments.
The IQ report, NZ-PAYDAYX - Non-Generated Payment Excluded from Payday Filing, mentioned in the document above, can help identify the missing employee data. Download the zip file below to your desktop and unzip the file to import the report into your MicrOpay IQ report list. Steps to import the IQ are included in the document above.