Get answers to some of your frequently asked questions about switching to foundU during the financial year
If you've recently transitioned to foundU during this financial year, you might have some questions about how your year-to-date (YTD) financial data from your previous payroll provider will be handled.
According to the guidelines provided by the Australian Tax Office (ATO), there are specific procedures to follow when switching payroll systems. At foundU, we do not transfer employee YTD amounts: your new payroll year-to-date figures will begin from zero.
This means that your employee's earnings, tax withholdings, and superannuation contributions will begin from zero as you enter your information into the foundU system. This approach simplifies the transition and ensures that your records are clear and accurate moving forward.
For more information on changing your payroll solutions during the financial year, please see the ATO's website here.
In this article, we will cover:
- FAQs on changing payroll solutions to foundU during the financial year.
If you have any more questions about this process or need further clarification, feel free to reach out to our support team. We're here to help you every step of the way!
Where do I import the year-to-date amounts from my previous payroll solution to foundU?
At foundU, we don’t transfer employee YTD amounts; you commence your new payroll solution from zero. This means that there is no need to import year-to-date information from your previous provider.
However, at the end of the financial year, you may need to check with your previous payroll solution if there are any finalisation steps that you'll need to complete for the end of the financial year.
This is my first EOFY with foundU. What do I need to know, and what actions do I need to take to finalise STP?
This EOFY timeline will help you navigate the EOFY process smoothly on your foundU platform. This step-by-step guide will help you complete the current financial year and prepare for the upcoming one.
If I finalise employees in my previous payroll solution and foundU, what will my employees see in their MyGov portals?
Since you will not transfer your existing employees' YTD amounts in foundU, a new income statement for the new YTD amounts you report through STP will appear as a separate income statement for the employee in their MyGov portal.
Will I need to perform two reconciliations, one in foundU and one in my previous payroll solution?
A reconciliation is part of the STP finalisation process in foundU. You should check with your previous payroll solution on whether a reconciliation is required as part of the finalisation process.
Will employees with annual caps, such as superannuation, have incorrect income statements? Since only part of their earnings data will be in foundU.
Super caps are the employee's responsibility to manage, and they need to keep track of contributions across both systems throughout the financial year. Employers are not responsible for an individual's super cap.
What will happen to employees who may cross into a different tax bracket with their earnings processed in foundU? How is the correct tax applied?
Tax tables do not calculate on a YTD basis; earnings are taxed over a specified period, so the YTD has no bearing on tax calculations. Only WHM tax scales take YTD into account; the previous YTD can now be entered in the tax section of the employee's profile to accommodate this.