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  • Finalising your Single Touch Payroll data

    You may be exempt from giving payment summaries and a payment summary annual report for the amounts you reported through Single Touch Payroll (STP). This information will be made available to your employees online through myGov. Your employees can also request a copy of this information from us.

    To be exempt from issuing these payments summaries to your employees, you will need to make a finalisation declaration. This declares you have provided all required information for the financial year through your STP reporting.

    These payment summaries include:

    • PAYG payment summaryindividual non-business (INB)
    • PAYG payment summaryforeign employment income (FEI)
    • PAYG payment summaryemployment Termination Payments (ETP).

    You will not have to provide payment summaries for the following payments if you reported them voluntarily through STP:

    • payments under voluntary agreement
    • payments under a labour hire arrangement
    • death benefit employment termination payment.

    You will need to provide a payment summary for any payments not reported through STP.

    End of financial year finalisation declaration

    You make a finalisation declaration by providing a finalisation indicator for an employee (and directors, contractors, etc.) as part of your STP reporting.

    Once you have provided the finalisation indicator for the employee, we will pre-fill the employee's income tax return and display the information as 'tax ready' in myGovExternal Link.

    You can make a finalisation declaration for an employee any time during the financial year (for example, for employees who have ceased employment), or after the end of the financial year up to 14 July.

    For the 2019-20 financial year:

    • employers with 20 or more employees will have until 14 July 2020
    • employers with 19 or less employees will have until 31 July 2020.

    If you need more time, you can apply for an extended due date to make your finalisation declaration.

    You may be subject to a penalty if you do not make a finalisation declaration by 14 July each year.

    Finalisation declaration during the financial year

    If you make a finalisation declaration during a financial year, you do not need to provide the employee with a part-year payment summary.

    If you pay an employee, and have already made a finalisation declaration for them for a financial year, consider the following:

    • if it is a one-off payment – make another finalisation declaration when you report this payment
    • if you expect to make another payment (for example, you re-hire the employee) – unselect the finalisation indicator and wait until the end of the financial year to make another finalisation declaration.

    If you finalise an employee partway through the financial year, the pre-fill will not be available until after the end of the financial year. The employee will need to follow the current process for lodging a part-year tax return. This would mostly impact employees who are leaving Australia once their employment has terminated.

    Amendments after finalisation

    If you need to amend details after making a finalisation declaration, you should submit these as soon as possible. You can do this by submitting an update event. We will make updated information available to your employee through ATO Online. We also recommend that you notify your employee of the any changes to their finalised income statement.

    We understand if you can't submit an update event report with the amended details within 14 days of identifying the need for an amendment. If this is the case, you should submit an update event with the previous details and this will remove the final indicator. This will advise us that the current information is not final and should not be used to pre-fill tax returns.

    You can amend finalised information reported through STP up to five years after the end of financial year.

    Overpayment relates to a previous financial year

    If you overpay a worker in a previous financial year and only discover the overpayment in a later year, you should submit an update event to advise us the amounts the employee should have received in the relevant financial year. Do not adjust the amount of tax withheld.

    You should provide an update event for each financial year an overpayment occurred in.

    If the overpayment relates to a payment you did not report through STP you should provide the worker with an amended payment summary and an amended payment summary annual report to us.

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    Last modified: 27 Mar 2020QC 54550