7 Steps for Publishing a Xero Payment Summary
You can publish a Payment Summary in Xero. At the end of the Australian payroll year, 30 June, you have 14 days to issue all employees with a payment summary. If employees leave before the end of the year, and have no intention of returning, you can issue them with a payment summary early.
Prior to publishing a payment summary, you should finalise all payments, post any draft pay runs for the relevant financial year, review the payroll year, and check everything reconciles accordingly.
Find the Payment Summary section in Xero
From the home dashboard, click Payroll→Employees and click the button labelled Payment Summaries.
The Organisation Dashboard opens. Check the organisation details are correct. The address telephone and fax details can be updated via Settings→General Settings→Organisation Settings.
In the Signatory field, enter the name of the person within the business who is responsible for the payment summary information being reported to the Australian Taxation Office (ATO). If the telephone and fax details haven’t populated from the Organisation Settings, fill them out in the free text field, and click the blue button labelled Confirm and Continue to proceed to the next stage. The Payment Summaries Details dashboard opens.
Payroll is a moving target because related legislation is constantly evolving. Check if Xero has implemented any changes, and update any pay items that may be affected, as it will retrospectively update the current financial year.
Select the financial year
Click the Financial Year Ending drop-down options and select the relevant financial year.
The previous year’s Payment Summaries need to be published before current years can be published. Gross Payments, PAYG, Total Allowance, Workplace Giving, Union/Assoc. Fees and RESC autofills from processed pay runs, and the opening balances entered in the Employee Details, if relevant.
Employee Reportable Fringe Benefit Amounts (RFBA) and Lump Sum details can be entered in the free text fields. Click into the Lump Sum field to reveal the Edit Lump Sum Payments window, which shows free text fields for A, B, D and E type payments. You’re also given the option to further define Lump Sum Payment A as Type R or T. Once entered, the type of payment is revealed in the text field.
Check the balances reconcile with the Payroll Activity Summary and make amendments as required.
Preview employee summaries
Preview Employee Payment Summaries by ticking in the box beside their name and clicking the button labelled Preview. The draft payment summaries will download to your computer. Check that these reconcile to the Payroll Activity Summary and make amendments as required.
Publish employee summaries
Publish Employee Payment Summaries by ticking the box beside the employee’s name and clicking the blue button labelled Publish.
Once a Payment Summary has been published, it appears in the Employee Portal and a blue tick shows in the Status column. When you hover over the question mark beside Status, you’ll reveal the meanings behind the relevant symbols. When you hover over the tick in the Status column, the user who published the Payment Summary and time stamp when this happened is revealed.
If an error is identified after a Payment Summary has been submitted to the ATO, it can be amended by un-publishing the summary, updating it, and publishing it again. When the Payment Summary is republished, there’s the option to mark the Payment Summary as amended on the employee’s copy and in the EMPDUPE file. This is necessary if the summary is to be resubmitted to the ATO.
Send the Payment Summary to an employee
Send the Payment Summary to an employee by checking the box to the left of the employee’s name, and clicking the blue button labelled Send to Employee.
The Send Payment Summaries to Employees window opens and you have the option to send payment summaries by email and/or generate a PDF. Select either or both options and click the blue Confirm button.
Once the PDF has been sent to the employee by email, the Status column is updated with a symbol to reflect this. If you hover over the tick in the Status column, the user who emailed the Payment Summary and time stamp when this happened is revealed.
Create an EMPDUPE file
Check the box to the left of all employee names, and click the green button labelled Create EMPDUPE. The Create PAYG Withholding Annual Report window opens. If you’re preparing Payment Summaries on behalf of your business, click No.
If, say, you’re a BAS agent, and you’re preparing Payment Summaries on behalf of another business, you have the option of giving your own supplier contact details on the lodgement to the ATO. Click Yes to reveal your Supplier Details and amend accordingly.
Download the file
Click the green button labelled Create EMPDUPE, and the EMPDUPE text file downloads to your computer. The file can be copied to, and mailed in digital format to, the ATO or loaded via the ATO business portal located at bp.ato.gov.au.
Double-check your employee opening balances are correct by printing the Payment Summaries and comparing them to the entered opening balances.