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June 18, 2019   |   Tips

Payment date and the financial year

Did you know that in Definitiv it is the payment date that drives what financial year a pay run will fall into?

As we are now only a week or two away from the 2019/20 financial year, it is important to take into consideration the payment date when scheduling pay runs and payments over this period.

It is advisable, all earnings and payments that are to be part of the FY 2018/19 YTD’s, should be processed with all payments released by normal banking cut off times on Friday 28 June 2019.

All payments made to employees from 1 July 2019 will be reported in the new financial year, regardless of whether the pay run relates to June or a prior period.

For example, if you have a pay run open for the period; 17 June 2019 to 30 June 2019 with the payment of the salary and/or wages as 1 July 2019, these payments will be classed in the new financial year’s earnings.