FY 19 /20 PAYG Payment Summaries – Single Touch Payroll Changes the way you finalise payment summaries
Now that all business are generally reporting through Single Touch Payroll (STP), there are some changes to your end-of-financial-year process you should be aware of.
Business is no longer required to provide payment summaries to employees or to lodge a payment summary annual report for information already reported and finalised through STP.
Employers are required to advise their employees that they won’t be receiving a payment summary as they will now receive their new income statement in their ATO online account via myGov or through their tax professional.
We encourage employers to talk with their employees to check their personal details with payroll as soon as possible. Out-of-date or incorrect details may prevent information from appearing in their ATO online account.
Employers must make a finalisation declaration for each employee after the last payment for the financial year. For the 2019–20 financial year the finalisation declaration deadline is:
- 31 July if you employ 19 or fewer employees; or
- 14 July for businesses with 20 or more employees.
The sooner the business finalises the process, the sooner the income statement will display as ‘tax ready’ in your employees’ ATO online accounts and be ready to use in their personal tax returns.
If an Employers has a ‘closely held (related) payees’, you may have a later due date for those payees.
More information can be found at: https://www.ato.gov.au/business/payg-withholding/payg-payment-summaries/
Be sure to speak to your Accountant for further information: https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/Single-Touch-Payroll-employer-reporting-guidelines/?page=7
Each workplace has its own unique challenges. Should you have any questions, please do not hesitate to contact your outsourced human resources team.
(07) 5613 1846 email@example.com