Our Wages Automation is specifically designed to streamline the reconciliation process of the balance sheet and expense accounts. It achieves this by automatically comparing the client's payroll amounts with those reported to the ATO, ensuring accuracy and efficiency.
For optimal utilisation of the Wages Automation, we recommend inserting the 'J50 BAS Lodgements' worksheet as the initial step to gather the necessary pay information from the ATO.
Simply click on the + Add button in the Taxation section to add the sheet and prefill the ATO data.
For more information, see the knowledge article: How do I populate the 'J50 BAS Lodgements' template?
Now let the Automation begin by inserting the 'N80 Wages and PAYG' worksheet at either a wages expense account or at the PAYG Withholdings Payable account.
We recommend inserting the sheet at the payable account as it will reconcile both the liability and the expense up front.
What is the automation actually doing?
When the 'N80 Wages and PAYG' worksheet is inserted it aims to identify all accounts relating to payroll, including if you have multiple expense accounts. These expenses account balances will be automatically added to the Ledger Account Balances area of the Wages and Salaries section of the worksheet.
What if I am missing an account?
If a wages account doesn't appear in the list, it may be classified incorrectly. To check or edit, navigate to the Account screen and check that the Account Type has been allocated correctly.
If not, you can manually edit the account by clicking on it and selecting Wages from the Account Type dropdown.
Note: You can also manually enter balances in the Ledger Account Balances area if required.
With the ledger balances inserted, the Automation will compare those balances with the payroll data lodged with the ATO. This comparison is made in the Payroll Summary section, with the ATO data being populated from the 'J50 BAS Lodgements' worksheet. Adjustments are automatically made for rounding.
What about the PAYG Withholding account?
The worksheet will reconcile PAYGW in exactly the same way as the expense accounts by detecting the ledger balance and inserting it into the PAYG Withholding section for comparison with the ATO data.
Note: The worksheet assumes that the PAYGW is paid in the following quarter. Remember to update the payments if this is not the case as this information determines the amount payable.
What if I insert 'N80 Wages and PAYG' against a wages expense account first?
If you insert the worksheet using one of the expense recommendations, you will notice that the PAYG Withholding is not reconciled. This is because the sheet hasn't been able to determine the correct liability account.
This is easily fixed by accepting the Wages and PAYG recommendation against the payable account. The account is then linked to the worksheet.
Congratulations, your payroll is now reconciled.