Single Touch Payroll (STP) finalisation processing for the end of financial year must be lodged with the Australian Taxation Office by 14 July.
STP works by sending tax and super information from your STP-enabled payroll or accounting software to the ATO when you run your payroll.
You finalise your STP processing by making a declaration indicating that you have fully and correctly reported for the financial year for each employee.
The ATO will consequently ‘pre-fill’ each employee’s tax return and display it as “tax ready” in the ATO online services accessed through MyGov.
The ATO provides the information in the form of an “income statement” which replaces the annual “payment summary”. The employee, or their registered agent, will then use the income statement to lodge their tax return.
The ATO will share STP information with Services Australia so they can streamline interactions with their customers. Similarly, super funds will report to the ATO when you make the super payment to your employees’ super fund.
Are you STP compliant? If you haven’t started STP reporting or transitioned to STP Phase 2 reporting, you may be subject to failure to lodge (FTL) penalties!
Need help with STP processing? CONTACT US today – we can even process for you!