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  • End-of-year finalisation through Single Touch Payroll

    What you need to know

    You need to finalise your employee's STP information through your STP-enabled solution by making a finalisation declaration by 31 July 2019. This is explained in detail in Finalising your Single Touch Payroll data.

    When you make the finalisation declaration, your employee's information will display as 'Tax ready' in ATO online via myGov.

    You are exempt from providing payment summaries to your employees (these are called income statements in myGov) and lodging a payment summary annual report to us for information you have reported and finalised through STP.

    You still need to give payment summaries to your employees for any payments not reported through STP and you will also need to provide us with a payment summary annual report for these payment summaries. See Transitioning to Single Touch Payroll

    How to get ready for end-of-year reporting

    • Before making your finalisation declaration, make sure your STP information is true and correct.
    • You’ll need to finalise your employees' information by 31 July 2019 and 14 July each following year, but you can do this as soon as it’s ready.
    • The sooner you finalise your employees’ information, the sooner they will be able to lodge their tax return.
    • Tell your employees their income statement will be available in ATO online – you can provide them with this Single Touch Payroll employees factsheet to help them understand the changes.
    • If your employees don’t have a myGov account, it's easy for them to create one – we have a video that will show them how to set up a myGov account.

    If you need to make an amendment

    If you identify that you need to correct any information after finalisation, you should make an amendment as soon as possible. You can do this by submitting an update event in your STP-enabled solution.

    What your employees will see at the end of the financial year

    On 1 July, your employees' year-to-date STP information will change from 'Year-to-date' to 'Not tax ready' in their income statement view until you finalise your employees’ information.

    Some employees like to lodge their tax returns during July and may choose to do so before you have finalised their STP information. We will make it clear to them that their income statement is not yet 'Tax ready'. If they choose to use the un-finalised information, they will need to acknowledge that:

    • you may finalise their income statement with different amounts
    • they may need to amend their tax return and pay additional tax.

    We have produced the following summary factsheet as a handy resource:

    See also:

    Media: End of year processing through Single Touch Payroll
    http://tv.ato.gov.au/ato-tv/media?v=bd1bdiunpzwdiz (Duration: 40:03)

    Last modified: 17 Jun 2019QC 58561