FGHTables

The end of financial year is a very busy time for many businesses. Payroll is one of those things that must be done within certain time constraints. Users often ask 'when is the best time to load the new tax tables?'

When processing Payroll, MYOB® will use whatever tax tables are currently loaded in the company file. The tax rates in the new tables apply from 1 July 2023. You should continue to use your current tax tables until then.

The best time to update is after your last payroll Payment Date in 2022/23 and before your first payroll Payment Date in 2023/24. Whether you load the new tax tables before or after you Start a New Payroll Year makes no difference (unless you are using AccountEdge®).

There is also the issue of Payment Summaries and Starting a New Payroll Year which can also raise timing questions.

The best way to explain the recommended approach is by way of an example.

Let's say you pay your employees on a fortnightly basis, two days after the end of each fortnight. In our example your last payroll Payment Date in the 2022/23 year will be on 20 June 2023 for the fortnight ended 18 June 2023. The next payroll Payment Date will be on 4 July 2023. Even though part of this next pay period includes the 2022/23 year, employees are taxed on the date they are paid, so all of this next pay will be taxed at 2023/24 rates.

• 20 June 2023 - final pay for 2022/23
• Prepare and lodge final STP report or prepare Payment Summaries (save PDF copies) and EMPDUPE file
• Do a backup of your company file called '2023 Payment Summaries' or similar
• Start a New Payroll Year
• 4 July 2023 - first pay for 2023/24

The tax tables can be loaded anytime after 20 June 2023 and before 4 July 2023 (that is after your last pay for 2022/23 and before your first pay for 2023/24).

Note that you cannot process your 4 July 2023 payroll until you Start a New Payroll Year. Starting a new payroll will clear all 2022/23 Payment Summary data stored in the file in preparation for the 2023/24 Payment Summary data. This is why it is important to do a backup just in case you need to re-do the 2022/23 Payment Summaries for any reason.