The end of the financial year is fast approaching and will be the first year for many employers using Single Touch Payroll reporting. Your end of year payroll processing for your employees may be different this year as follows:
If you have been reporting your payroll to the ATO by Single Touch Payroll:
- You are required to make an end of year finalisation declaration to the ATO once you have lodged your final pay run for the 2019/20 financial year. For employers with 1-19 employees, this must be submitted to the ATO by 31st July 2020. For employers with 20 and over employees, this must be submitted to the ATO by 14th July 2020.
- Each software has a slightly different process on how to make the finalisation declaration. Please see the links below for further information on commonly used software
Reckon Accounts https://help.reckon.com/article/zln8k3u29s-finalise-year
- You are not required to issue income statements (formerly named ‘payment summaries’ or ‘group certificates’) to your employees at the end of the financial year. Once you have lodged the end of year finalisation declaration to the ATO, their payroll information will be prefilled to their MyGov account if they are preparing their own income tax return, or if using a tax agent will be available to agents on the ATO tax agent portal;
If you are not yet reporting your payroll to the ATO by Single Touch Payroll:
Some employers do not have to use Single Touch Payroll reporting until 1st July 2021. These include:
- Micro employers (those with 1-4 employees) – you can choose to report through your registered tax agent on a quarterly basis. If you have engaged HHH Partners to attend to your quarterly Single Touch Payroll reporting, you will need to have your payroll information to our team no later than 17th July 2020. This will allow us to process your April-June 2020 Single Touch Payroll reporting and attend to lodgement of the end of year finalisation declaration with the ATO by 31st July 2020;
- Employers with only ‘closely held’ employees – if you have 19 or less employees consisting of family members you do not need to report through STP until 1st July 2020. You will need to issue payment summaries to your employees for the 2019/20 financial year by 14th July 2020, and lodge a PAYG Payment summary Annual Report with copies of the employee payment summaries with the ATO by 14th August 2020.
Should you require any assistance with your end of year payroll processes, please contact a member of our team.