With the end of the financial year around the corner, it’s time for employers to begin preparing their end of financial year employee payroll details.
End of financial year process has become much easier with Single Touch Payroll (STP), as STP sends your payroll information to the ATO in ‘real-time’ each time your payroll is processed within your online software. This means that employers reporting through STP no longer need to complete paper PAYG Payment Summaries and Statements at the end of the financial year.
This also means that you will no longer be required provide your employees with PAYG payment summaries (AKA group certificates), and instead your employees can obtain an ‘Income Statement’ from their tax agent or myGov account. If this is your first year using STP, we suggest reminding your employees of this new process so they do not expect to receive a paper payment summary.
Further, to notify the ATO that you’ve completed all pays for the payroll year, you will be required to lodge a finalisation declaration from your online software. Please ensure sure your STP information is correct before making this lodgement. This will need to be done before 14 July to ensure that the status of your employee’s Income Statements update to ‘Tax ready’, which means that they can then prepare and lodge their 2020 tax returns.
If you require any assistance with your end of year payroll processes, whether you use STP or not, please contact the friendly team at HQB and we will help you out.
– April Limbert & Kanista Arokianathan
This article is compiled as a helpful guide for your private information and is subject to copyright. We suggest that you do not act solely on the basis of material contained in this article because items are of general nature only and may be liable to misinterpretation in particular circumstances. We recommend that our advice be sought before acting on any of these crucial areas.