Single Touch Payroll Finalisations by 14th July
Here is a summary of the ATO article about STP Finalisations before July 14th. To find the full article, click here.
Single Touch Payroll (STP) requires employers to submit an annual finalisation declaration by July 14. This process ensures that employees can access their income information to complete their tax returns. If an employer is unable to make the declaration by this date, they must apply for a deferral.
Following successful finalisation of employee information through STP, employers are exempt from providing payment summaries to employees and from lodging a payment summary annual report. For payments not reported via STP, employers must continue to provide payment summaries and lodge annual reports.
Several common issues can arise when making a finalisation declaration, including inaccuracies in the year-to-date (YTD) amounts, finalising records for the wrong financial year, and omitting some employees in the finalisation declaration. Employers must be diligent in checking these details.
Changing payroll software or Payroll IDs within the financial year requires careful steps to ensure accurate income statements. Proper transition helps avoid overstating income.
For employers with closely held payees, the rules vary depending on the employer’s size and the mix of payees. In some cases, the finalisation due date extends to September 30.
If amendments are necessary after submitting a finalisation declaration, they should be lodged promptly. Employees should be informed about these changes, especially if they’ve already lodged their tax returns.
Employees should be informed that they can access their year-to-date and end-of-year income statements online via myGov, and that their income statement will change status to ‘tax ready’ after the employer has made the finalisation declaration. Employees should be advised to wait until their income statement is ‘tax ready’ before lodging their tax return.
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