As the end of the financial year approaches, Australian employers must ensure they finalise their Single Touch Payroll (STP) reporting accurately. STP Finalisation is a critical step in the payroll process that ensures all employee payroll information is correctly reported to the ATO (Australian Taxation Office). Here’s everything you need to know to get it right:
What is STP Finalisation?
STP Finalisation involves reporting the total year-to-date amounts of salary and wages, pay as you go (PAYG) withholding, and superannuation for each employee to the ATO. It provides a comprehensive overview of payroll information for the entire financial year, which helps streamline tax reporting and compliance.
Key Dates to Remember
- Finalisation Deadline: The deadline for finalising STP data is 14th July following the end of the financial year. This ensures that all information is reported accurately and on time.
- Employee Notification: Employers must notify their employees when their STP data is finalised. This notification should include details on how they can access their income statement (formerly known as payment summary) through myGov.
What Employers Need to Check
When finalising STP data, employers should:
- Verify Data Accuracy: Ensure all payroll information, including salaries, wages, PAYG withholding, and super contributions, matches the records for each employee.
- Employee Details: Check that employee details such as Tax File Numbers (TFNs) and personal information are correct and up to date.
- Income Statements: Confirm that income statements have been issued to employees and are accessible through myGov.
Seeking Advice from a BAS Agent
For employers unsure about the STP Finalisation process or needing assistance with payroll compliance, consulting a registered BAS Agent is highly recommended. BAS Agents are qualified professionals who can provide expert advice on STP reporting, ensure compliance with ATO requirements, and help resolve any issues that may arise during the finalisation process.
We’re here to help. Contact us today if you need help ensuring your payroll system is set up accurately, your payroll data is accurate and for assistance with lodging STP Final.