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When do I change my Taxation Year Boundaries for the End of Financial Year in Sage WageEasy?

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Summary

In Sage WageEasy, when your last PPE date in June is paid in July or, your first PPE in July is paid in June (i.e. the PPE date and the PAYMENT date are in two different months) then you need to change your Taxation Year Boundaries.

Resolution

Sage WageEasy contains a warning message for Taxation Year Boundaries and your final pay for the year. The warning will appear as soon as your PPE date or system date is a June date.

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This warning will continue to appear until you go to Setup > Preferences > Configuration > Period End > Taxation Year Boundaries and tick the Reviewed Tax Year boundary for the current financial year box.

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For more details, ask Pegg “Do I need to change my end of financial year boundary”

Determining Taxation Year End Boundaries for End of Financial Year.

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If the pays for the last PPE date in June is paid to employees in June, then no action is required;

or

The first PPE date in July is paid to employees in July, no action is required.

An example of when to change Taxation Year Boundaries:

Your PPE date is 27/06 and the date the money is paid to employees is 01/07, i.e. the PPE date and the payment date are in two different months.

Changing the Taxation Year End Boundary (If Necessary)

If you have determined that you do need to change the Taxation Year Boundaries for this financial year end, you can do so in Sage WageEasy via:

Setup Menu > Preferences > Configuration > Period End > Taxation Year Boundaries > Select and Edit the current FY

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Example: The last PPE date for June is PPE 27/06/2021, but the employees will only receive payment on Thursday 01/07/2021. The end date needs to be changed to 26/06/2021 (the day before the PPE date that will be paid in July).

If the pays for the first pay period ending date in July are paid to employees in advance, i.e. before the 1st of July, set the End Date to a date after the appropriate pay period ending date (i.e. the July date) that will cut the Taxation Year Boundary off a day later and ensure the entire pay period is included in the current financial year’s reporting.

Where multiple PPEs (i.e. Monthly and Weekly Pay Periods) are contained within the one Sage WageEasy Payroll Database

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There is a Calendar Month PPE 30/06/2021, processed and paid on 15/06/2021. In addition, there is a Weekly PPE Wednesday 30/06/2021, processed and paid on Thursday 1st July 2021.

In this example, the Calendar Monthly Cycle would need to be recorded in this current Financial Year, but the Weekly PPE cycle would need to be reported as the first PPE in the next financial year.

In this instance, the recommendation would be to change the Calendar Month PPE Cycle to be a Monthly Cycle that ends 26/06/2021 and then processed and paid to employees, as anticipated, on 15/06/2021.

To align the Calendar Month, Pay Period Ending to be a Monthly Cycle, go to Setup > Preferences > Configuration > Pay Periods > Calendar Month Cycle > Edit to be a Monthly Cycle with a Pay Period End as 27/06/2021.

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In this example, Setup Menu > Preferences > Configuration > Period End > Taxation Year Boundaries > Select and Edit the current FY End Date to be 27/06/2021.

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o If changing a period end data for the taxation year, please consider carefully the date you are selecting. The system will not allow you to change the taxation year boundary end date a second time for the same Financial Year.
o The Period End cannot be changed if you have already saved pays for the last pay period ending date for June or first pay period ending date for July.
o DO NOT change the Period End boundary if the pay period ending date and the payment date are in the same financial year.
o Create a BACKUP before you change the “Period End Boundary”.
o By default, the “Period End Boundary” will be 01 July – 30 June for each Financial Year.
o This procedure is ONLY required in instances where either the Pay Period ending date falls on or before 30/06/2021 but the Employees are not physically paid their wages until July 2021, or the pay period ending date falls on or after 01/07/2021 but the employees are paid their pays in June 2021.
o Once the Period End boundary date is set for one year, the following date then automatically filters through to be the Start Date of the next financial year.
o Once a pay cycle (PPE) has been processed past the set Period End boundary date referenced in the Taxation Year Boundaries screen, these dates cannot be changed.