How to create PAYG Group Certificates

A Pay As You Go (PAYG) Payment Summary (previously known as a Group Certificate) is a record created by your employer that notifies both you and the Taxation Office your employment earnings for a financial year or period within a financial year. Your employer then gives you this summary for your records and to include in your tax return.

A financial year generally commences 1 July and concludes 30 June.

You can have several PAYG payment summaries each year if you work for more than one employer.

The PAYG Payment Summary details the gross salary, the tax deducted from the gross salary, any Fringe Benefits and allowances. It also includes additional superannuation contributions your employer has made above the required 9.5% statutory amount.

PAYG Payment Summaries are required the be issued from employers to their employees by 14 July following the end of the financial year.

In some other circumstance, PAYG Payment summaries can also detail termination and compensation payments like those provided by Centrelink or withdrawals from your superannuation pension prior to the age 60. These Payment Summaries must be issued within 14 days after the event.

If you’ve lost your payment summary, you can engage a Tax Agent to do your tax return. They have special access rights to ATO records and your Payment Summary may be listed there.

AS of 1 July 2019, the rules for employers will change as the new ‘Single Touch Payroll” regime comes in for most employers.  For the 2020 financial year employer will report payments to the taxation office directly each pay period and employees will need to log onto their account with the ATO to view their payment details.

What you need to know to develop your group certificates

Quickbooks Group Certificate:

The Quickbooks payroll-end of year processes is a comprehensive document that will assist you in formulating your group certificates for your employees.

Xero Group Certificate:

Here is a video produced by Xero to assist you with your end of year group certificates:

You need to ensure that you have:

  • Ensure the payroll data matches the general ledger
  • Prepare and publish Group Certificates for Employees
  • Submit a payment summary report to the ATO

Another document that might assist you in making your transition into the new financial year easier is doing a year end in Xero.

MYOB Group Certificate:

This video produced by MYOB provides extensive insight into how to prepare your group certificates and closing your payroll at the end of the year.

If you need any assistance with your year end processing our highly qualified team of CPA’s at Northern Business Consultants would be more than happy to help you with your business accounting. Call us on (07) 3862 8777 or contact us.