Employers are now required to report their employees pay using Single Touch Payroll. For employees to lodge their tax returns, they require their employers to make a finalisation declaration via their accounting software.
Employers will, therefore, need to finalise your employee’s information by:
- 14 July 2020 if you have 20 or more employees
- 31 July 2020 if you have 19 or fewer employees
How to make a finalisation declaration
First up, you’ll need to ensure all your STP information is correct. The finalisation process will then depend on the accounting software you use, with available guides below.
You will have to apply for a deferral if you can’t make a finalisation declaration by the due date.
Click here to learn how to make a finalisation declaration using:
You can also watch how to process an STP finalisation via Xero here.
What to tell your employees
You will need to tell your employees:
- you are no longer required to provide them with a payment summary for the information you’ve reported and finalised through STP
- they can access their year-to-date and end-of-year income statement online through myGov or talk to their registered tax agent
- ‘income statement’ is the new term for their payment summary
- to wait until their income statement is ‘Tax ready’ before lodging their tax return
- to check their personal details and if necessary update with both you and the ATO (incorrect personal details may prevent them from seeing their STP information)
You may also use this fact sheet to make the process easier.
If you need assistance, feel free to contact us here.