Single Touch Payroll and EOFY Reporting
Reporting through Single Touch Payroll (STP) has brought changes to the end-of-financial-year reporting processes.
Employers will no longer need to provide a ‘payment summary’ (i.e. the former group certificate) to Employees and nor are Employers required to lodge a payment summary annual report with the ATO. This is now an automated process as part of STP.
Employers are recommended to advise Employees that they will no longer be receiving a payment summary for their wages and that they will be able to see their payment information in their ATO online myGov account. To confuse matters evermore however the ATO has named this section as an ‘income statement’.
Employees should check their personal details with Employers as out of date or incorrect personal details may prevent them from seeing their information. If Employees do not have a myGov account, they can create one at my.gov.au.
Employers must make a finalisation declaration for each employee after the last payment for the financial year. For the 2019–20 financial year the finalisation declaration deadline is:
- 14 July for Employers with 20 or more Employees
- 31 July for Employers with 19 or fewer Employees.
The sooner Employers finalise their obligations per above, the sooner the information will display as ‘tax ready’ in the Employee’s ATO online account and as such be ready for them to complete their 2020 personal tax return.
Warning: It is imperative that the Employee information on the STP portal is correct. Where this information is lacking, the Employee may not be able to lodge their Income Tax Return and may result in unnecessary angst between the Employer and their Employee. We therefore recommend Employees are advised of this new process so that issues may be minimised for all concerned.
For further information please email firstname.lastname@example.org.
Date of Issue: 17 June 2020 Author: Noé Vicca
Disclaimer: The contents herein are intended for general information only and should not be construed as legal or accounting advice. Vicca Chartered Accountants Brisbane bears no responsibility for any loss that might occur from reliance on information contained in this publication. Please do not reproduce, transmit or distribute the contents herein in any form without prior permission from Vicca Chartered Accountants, Taxation Accountants Brisbane Australia.