Single Touch Payroll – Changes to EOFY reporting

Single Touch Payroll (STP) reporting has been a requirement for all businesses with 20 or more employees, and optional for smaller employers, since 1 July 2018.  For these businesses already reporting via STP, your end of financial year (EOFY) reporting process has 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.  Rather, STP reporting employers will have until 31 July 2019 to make the finalisation declaration within their chosen software solution, however the ATO is encouraging employers to finalise all employee records as soon as they are ready. 

STP reporting businesses not issuing payment summaries should let their employees know that they 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 create an account and link it to the Australian Taxation Office (ATO), where their finalised payroll information will display as ‘tax ready’ for use in their tax return.

From 1 July 2019, Single Touch Payroll reporting will become compulsory for all employers.  Our blog It’s time to get ready for Single Touch Payroll Reporting has more detail about how to become STP ready, or you can contact one of our friendly team members for more information.