Since 1 July 2019 almost all businesses have reported employees’ payroll information – such as salaries and wages, pay as you go (PAYG) withholding and superannuation – to the ATO each time an employee has been paid.
This reporting change is called Single Touch Payroll (STP).
If you are employed by a business you are probably aware nothing has changed with the way you have been receiving your salary or wages. What has changed is that employees can now see their year-to-date tax and super information in their Income statement. Their data is updated every time a business reports. For most employers, this will be each pay day.
The income statement is the new name for your payment summary (which some people call a group certificate). At the end of each financial year businesses need to complete an STP end-of-year finalisation to make employee income statements “Tax Ready”.
What this means for business
- If you are a business with 20 or more employees you needed to have completed an end-of-year finalisation by 14 July 2020.
- If you are a business with 19 or fewer employees you need to have completed an end-of-year finalisation by 31 July 2020.
To complete an end-of-year finalisation, we have provided links to guides from the major SME accounting software.
We have already fielded calls from many of our clients and assisted them through the process, so if you need assistance with your end-of-year finalisation then please get in touch.
- MYOB AccountRight Live – https://help.myob.com/wiki/display/ar/End+of+year+finalisation+with+Single+Touch+Payroll+reporting
- MYOB Essentials – https://help.myob.com/wiki/display/ea/End+of+year+finalisation+with+Single+Touch+Payroll+reporting
- Xero – https://central.xero.com/s/article/Finalise-Single-Touch-Payroll-data
- Quickbooks – https://quickbooks.intuit.com/learn-support/en-au/payroll-and-stp/end-of-financial-year-processing-using-stp-frequently-asked/01/370878
What this means for employees
The income statement is the new name for a payment summary (which some people call a group certificate). The income statement will be available in ATO online services after the end of the financial year.
Employers do not have to provide a paper or digital payment summary for the information they report through STP.
When an income statement is ‘Tax-ready’, the ATO will send a notification to your personal myGov Inbox. If an employee does not have a myGov account linked to the ATO, they can phone to receive a copy.
Employees can continue to lodge tax returns the same way they do now. This may be through a registered tax agent or myTax.
If you have any questions about the information above please contact the team at Abbotts, we will be happy to assist you. You can find details to get in touch with us on our contact us page.