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  • Finalising your Single Touch Payroll data: employer factsheet

    What is STP

    Single Touch Payroll (STP) is a new way of reporting tax and super information to us.

    Using payroll software, or another STP solution, you will send your employees’ salary and wages, pay as you go (PAYG) withholding and super information to us each time you pay your employees.

    End of financial year changes

    • You will no longer need to provide payment summaries to your employees or lodge a payment summary annual report to us for information reported and finalised through STP.

    What you need to do

    • You will need to make a finalisation declaration within your STP solution. This declares you have provided all required information for the financial year.
    • Once you make the finalisation declaration, we will display the information as Tax ready for your employees in ATO online via myGov.
    • Your employees should wait until their information is marked as Tax ready before they lodge their tax return.
    • If your employee uses a registered agent to lodge their tax return, the agent will have access to the information they need to do this.

    When to finalise

    • Normally you will need to make the finalisation declaration by 14 July each year.
    • If you started reporting in the 2018-19 financial year, you will have an extended due date until 31 July 2019.
    • You don’t have to wait until 31 July - you can finalise as soon as you’re ready.

    What to tell your employees

    • Tell your employees you are no longer required to provide them with a payment summary for the information you’ve reported and finalised through STP.
    • Let them know they can access their year- to-date and end of year payment summary information in ATO online via myGov and it is now called an income statement.
    • Encourage your employees to check their personal details are up to date with you and in ATO online before tax time. Out of date or incorrect personal details may prevent your employee from seeing their STP information.
    • They should wait until their information is marked as Tax ready before they lodge their tax return.

    If you need to make an amendment

    • If you identify the need to amend details after making a finalisation declaration you should submit these as soon as possible. Amendments to finalised STP data can be made through your STP solution.
    • Lodging an amendment to finalised STP data may impact your employees in the following ways:
      • Amendments to STP data before the employee has lodged their tax return will result in an updated Tax ready income statement which will be available in ATO online and myTax pre-fill.
      • Amendments to STP data after the employee has lodged their tax return which results in a refund, will result in us amending the return and issuing an amended assessment and refund.
      • Amendments to STP data after the employee has lodged their tax return, which results in additional tax payable may require the employee to take action. We will contact the employee to let them know what they need to do.
       

    If you’re unable to make a finalisation declaration by 31 July

    • If you are unable to make a finalisation declaration by the due date, you will need to apply for more time.

    If your employees tax return has information that is not tax ready?

    • Employees should wait to lodge their tax return until the information is finalised and marked as Tax ready. If your employees use data that is ‘Not tax ready’ to lodge their tax return, they are acknowledging that:
      • you may finalise their income statement with different amounts
      • they may need to amend their tax return and additional tax may be payable.
       

    If your employee has more than one employer

    • If your employees have more than one employer, remind them that not all employers have started STP reporting yet.
    • They will still receive a payment summary from employers who are not yet reporting through STP.

    If your employee doesn’t have myGov

    • If your employee doesn’t have a myGov account, it’s easy to create one. Go to my.gov.auExternal Link.
    • Employees can speak with their registered agent who will have access to their income statement information.
    • If your employee can’t create a myGov account, or does not have a registered agent, they can contact us on 13 28 61.

    If your employee has myGov but can’t see their income statement

    • There may be instances where we have been unable to match your STP data to your employee. For example where the TFN you’ve reported doesn’t match our records.
    • If your employee can’t see their income statement, let them know to contact us on 13 28 61.

    Where to find more information

      Last modified: 13 May 2019QC 58854