Reporting through Single Touch Payroll (STP) will require some changes to your end-of-financial-year processes.
You no longer need to provide a payment summary to your employees or lodge a payment summary annual report to us for any information that’s already been reported and finalised through STP.
You should tell your employees that:
- you won’t be giving them a payment summary
- they’ll be able to see their information (called an income statement) reported through STP in their myGov account linked to ATO online services.
Encourage your employees to check their personal details with you and in our online services before tax time. Out-of-date or incorrect personal details may prevent them from seeing their information.
You must make a finalisation declaration for each employee after your last payment for the financial year. For the 2019–20 financial year the finalisation declaration deadline is:
- 14 July for businesses with 20 or more employees
- 31 July for businesses with 19 or fewer employees.
The sooner you finalise, the sooner your employee’s income statement will display as ‘tax ready’ in their myGov account linked to ATO services for completing their tax returns.
Your employees can access their income statements as follows:
- sign in to their myGovExternal Linkaccount or create a myGov account if they don’t already have one and link to ATO online services
- open the Servicestab and click on the Australian Taxation Office link
- select the Employmenttab and Income statements menu
- select Currentto view your income details reported through STP
- when your income statement is Tax readyyou can use this information to complete your tax return.
Closely held payees
From 1 July 2021, amounts paid to closely held payees will need to be reported through STP. If you’re a small employer you can report these amounts on or before each payday, or you can choose to report this information quarterly.
Find out more about the Single Touch Payroll requirements from the ATO website or contact us today to discuss your specific situation.
This information was sourced from www.ato.gov.au.