General Ledger Setup
MYOB Exo Payroll has the ability to analyse your payroll costs to a range of user-defined General Ledger codes. The resulting reports can be previewed, printed out, or exported electronically to many common accounting applications. The General Ledger Setup section of the Setup Payroll window enables you to set up these codes.
General Ledger codes can be alphanumeric and can be up to 20 characters long.
Account code setup
Use general ledger analysis In a basic payroll setup, transactions are attached to Cost Centres, allowing you to group your payroll costs by Cost Centre code on the Costing Analysis and Costing Summary reports. This is primarily for financial/budgeting purposes.
Enabling General Ledger analysis takes this process one step further by attaching General Ledger codes to Cost Centres, allowing you to group your payroll costs by General Ledger code by way of the General Ledger reports. This is primarily for accounting purposes - the total amounts per General Ledger become entries into the General Ledger at the end of the accounting period.
Expense accounts can be created when Cost Centres are created, during Step Six of the Payroll Setup Cycle. At this stage the primary concern is creating Clearing accounts, in order to offset the forthcoming expense accounts, and thereby balance the accounting equation.
Suspense
PAYG Pay As You Go withholding is a levy on the employee's taxable income. The purpose of the PAYG system is to simplify the payment and collection of taxes and to collect income and other taxes closer to the point in time when the income is earned or payment made. Under PAYG, business entities are required to report all tax liabilities to the ATO on a single form at regular intervals. The PAYG provisions cover items such as payments of income tax by businesses and superannuation funds (called PAYG instalments) and tax withheld from salary and wages, ETPs, pensions and annuities, payments in respect of non-cash benefits, and amounts withheld from payments to entities that do not quote a tax file number or an Australian Business Number (collectively PAYG withholdings).
WorkCover The WorkCover levy calculated on employee earnings, paid to WorkCover insurance.
Superannuation (non-cash) The employer superannuation contribution (superannuation guarantee).
Non-cash benefit Non-Cash Benefits paid to employees, e.g. Fringe Benefits.
Payments
Net pay by Direct credit The employee's after-tax earnings, paid into their bank account by the employer.
Net pay by Cash The employee's after-tax earnings, paid as cash-in-hand by the employer.
Net pay by Cheque The employee's after-tax earnings, paid as a cheque, made out to the employee, or cheque bearer.
Rounding Rounding occurs when:
- dollars and cents are added to the net pay, as the net pay needs to be rounded up to the nearest rounding increment.
- dollars and cents are withheld from the net pay, as the net pay needs to be rounded down to the nearest rounding increment.
Provisions
Annual Leave The Annual Leave accrued each pay period.
Personal Leave The Personal Leave accrued each pay period.
Long Service Leave The Long Service Leave accrued each pay period.
Each leave type has a Track Provisions check box next to it. Ticking these boxes means that the that the necessary GL journals are generated when leave of the corresponding type is taken by an employee.
Accruals to the Leave provision accounts will only be maintained for employees whose Leave Groups use the "Hours" method. If employees are set to the "Calendar" method, or if they have no Leave Group assigned, leave will be expensed directly.