When setting up payroll in Xero, most employees will have opening balances so that payment summaries can be created out of Xero easily. The downside is that the reporting for the first quarter/ month after conversion does not easily give the correct figures for earnings, PAYG and super. To get those, you’ll need some details from your old system.
Below is an example of how to get the correct figure for Wages and PAYG Withheld for the first quarter post-conversion. In this example, the last payroll completed in the source file was 28 October.
EXAMPLE: You created your last payroll in the source file on 28 October and moving forwards payroll has been completed in Xero. The Wage and PAYG Withheld figures are needed for the October - December BAS.
In Xero, you can confirm that the last pay run was completed on the 28 October by:
1. Selecting the Payroll tab, Assuming that everything has been run in the correct way in your source file and that the amounts have been paid this is how you can calculate the figures that needs to be lodged for the January-March quarterly BAS:
2. Select Employees
3. Select the Employee you would like to view by clicking on them
4. Select the Opening Balances tab
5. In the top left of the Opening Balances tab you will see the date of the imported balance with a lump sum on total earnings, PAYG tax and the superannuation fund. These opening balances are included so that Year to Date figures can be calculated some of these amounts will have already been both lodged and paid to both the Australian Taxation Office, Superannuation funds and employee.
Assuming that everything has been run in the correct way in your source file and that the amounts have been paid this is how you can calculate the figures that need to be lodged for the October - December quarterly BAS:
1. In Xero Go to Accounting tab, select Reports.
2. Under Payroll Select the Payroll Activity Summary report, ensure all employees are included and “Select Date Range”, your date needs to be the first date of the initial pay run created in Xero up until the end of the quarter. Using the above example you would select 29 October – 31 December as the date range. You will then be able to view each employees total amounts in the different line items, such as earnings, tax and superannuation created by you using the Xero payruns.
3. Obtain figures from your source file running your report from 1/10/YYYY - 28/10/YYYY.
4. Add these total amounts from the MYOB/RECKON reports onto the Xero Payroll Activity Summary report. Once you have added the figures from the source file to the Xero figures this will display the amounts that need to be lodged and paid.
Note: When running the report this way it omits the Opening Balances which can be seen in the Payroll Activity Summary Report below when run for the full period: