End-of-Year Reporting under STP — why it is easier
This end of financial year (EOY) is the first under Single Touch Payroll (STP) for many employers. If you are already reporting pays via STP, your EOY is a new simplified process free of payment summaries and annual reports. Replacing these is the concept of finalisation.
EOY without Single Touch Payroll
- Payment summaries must be created and issued to all staff.
- A payment summary annual report must be created and sent to the Australian Taxation Office (ATO).
EOY with Single Touch Payroll
- Payment summaries are no longer required for information reported through STP. The ATO will instead make this information available as an ‘income statement’ to your staff via myGov. The ATO will send a notification to each employee’s myGov inbox when their income statement is ‘tax ready’.
- A payment summary annual report is no longer required for information reported through STP.
To be exempt from creating payment summaries and an annual report you need to submit a finalisation declaration via your payroll software.
In Attaché Payroll, this is as simple as selecting to finalise employees when you report your final pay run of the financial year or, if you prefer, as a separate STP submission after the final pay run.
Finalisation acts as a trigger for the ATO to pre-fill the employee’s income tax return and display the information as ‘tax ready’ in myGov.
For end-of-year finalisation, you have until 14 July. However, the ATO has provided additional time for employers to make the finalisation declaration in their first year of reporting through STP. So if you started reporting in the 2018/19 financial year, you have until 31 July 2019.
Download a free STP employee fact sheet
Have you educated your employees about how STP impacts them? Our free fact sheet provides everything they need to know. Download your copy now.
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Single Touch Payroll for employees
Single Touch Payroll also impacts your employees. Our STP employee fact sheet provides everything your staff need to know.