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Middleton Business Advisers's 

 

STP Payroll 

Finalising your Single Touch Payroll data

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 Out of date or incorrect personal details may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.au.

¦ Employees can speak with their registered agent who will

have access to their income statement information.

¦ 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 ATO on 13 28 61.

If you have any questions, comments, suggestions, please don't hesitate to contact us at any time. We look forward to hearing from you.

Kind Regards

The Team
Middleton Business Advisers 
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    Postal Address
    PO Box 220, Merredin WA 6415

    Phone: (08) 90411 226
    Fax: (08) 90411 793

    Email: info@middletonadvisers.com.au

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