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Single Touch Payroll

June 9, 2020

Finalisation declarations are required in July

Single Touch Payroll (STP) has now been mandatory for all businesses since 1 July 2019.  As the end of the financial year approaches, it’s important that you understand how your end of year payroll reporting processes have changed.

Businesses reporting via STP are no longer required to provide payment summaries to employees, or lodge a payment summary annual report for any information that has already been reported and finalised through STP.  Instead, businesses must make a finalisation declaration via their STP-enabled software within a certain timeframe:

  • Businesses with 20 or more employees: Due by 14 July 2020;
  • Businesses with 19 or fewer employees: Due by 31 July 2020. 

Once the finalisation declaration has been made, employees will be able to see their finalised payroll information (referred to as an income statement) in their ATO online account via myGov.  Employees without a myGov account should go to https://my.gov.au to create an account and link it to the ATO, where their finalised payroll information will display as ‘tax ready’ for use in their tax return.

If your business is not currently registered for Single Touch Payroll, penalties may apply.  Contact our team today for assistance with STP registration and managing your ongoing compliance.