Employer Finalisation Report
Important Change for Employers
Single Touch Payroll (STP) Finalisation Report
The 2019 – 2020 financial year saw the introduction of Single Touch Payroll for all small employers (those with less than 20 employees) which meant employers needed to start providing Wages, PAYG tax and superannuation information in an electronic format to the Tax Office.
As the 2019 – 2020 financial year draws to a close, employers need to be aware of their obligation to lodge a Finalisation Report by July 14, 2020. This finalisation report will provide the ATO with annual Gross wages, PAYGW tax and super information for all staff employed during the financial year. Until this is lodged employees will not be able to lodge their own tax returns! This replaces the need to issue a Payment Summary to the employee.
All employers will need to:
- Use their STP solution to ensure the Finalisation Report is lodged by 14 July 2020
- Check the links below for the relevant software instructions
- Inform their employees that:
- They will not be issued with a payment summary
- They can access their salary information via their myGov account via the ‘Income Statement’
- Let employees know that they should not lodge their tax return until their status reads ‘Tax Ready’ (check myGov or ask your accountant)
Where Watts Price or Knights Accounting process your STP obligations:
- We ask that you process your transactions monthly rather than wait until the end of the quarter i.e. process all transaction for April, then May and finally June as soon as possible at the end of the relevant month rather than doing them all in July
- In June we will request from you a total by employee of the wages paid to date for the year so we can compare this to the total of the wages we have processed for the Year to Date (YTD) via STP
- The first two weeks in July we will prioritize the processing of these Finalisation Reports to ensure employers meet the July 14 deadline.
- By July 14 we will contact each employer with a report of the wages for the FY2020 to sign off prior to the lodgement of the Finalisation Report
- If you are going to be away during June or July or if you will not be paying wages at this time please contact us so we can arrange to lodge your report earlier than the deadline.