You must make a final declaration by 14 July each year. If you have 19 or fewer employees, you have until 31 July to make this declaration. By reporting and finalising your employees’ information through Single Touch Payroll (STP) you will be exempt from providing payment summaries to your employees and lodging a payment summary annual report to the Australian Taxation Office (ATO).
It is important to complete a final reconciliation prior to finalising your payroll through STP.
On 1 July, if you haven’t already submitted your final declaration, employees will see their status (on their personal MyGov account) change from ‘year to date’ to ‘not tax ready’. Once you have completed and submitted your final declaration, their status will then change to ‘tax ready’. Employees can choose to lodge their tax return prior to the status being marked as ‘tax ready’, however if there is a change to their data they may need to amend their tax return and potentially be up for more tax.
There is some helpful information on the ATO website regarding finalising your STP data. Your payroll software provider should also have tools and resources to help you navigate your way through the necessary steps.
For more information, click here.
If you require any assistance, we have a number of staff knowledgeable on all things STP – contact us on 08 9327 1777.