If you have been reporting Single Touch Payroll (STP) to the ATO this financial year, you will need to make a finalisation declaration. This takes the place of employee payment summaries, which you no longer need to issue for payments reported through STP.
GovReports offers 3 payroll solutions:
STP Reporting for Micro Business
This allows business owners or agents to report payroll events if the business is not using STP compliant software for managing payroll, or for micro employers who can report quarterly through a BAS agent.
Go to My Clients, select client, select Forms button. Select STP – Payroll Events.
From here edit pay event date and details and add new employees via manual entry, import or rollover from a previous pay event.
The finalisation declaration is done by marking the final pay run in the financial year with the Final Event Indicator along with Update Event to declare all required payroll information for the financial year.
From here, proceed to lodgment. For registered agents, the declaration is included at this point. You can then send to the business owner for digital authentication.
If you have previously reported a pay run as usual and later need to declare it as the final event, you can update the pay event to apply the Final Event Indicator.
From your dashboard, go to My Lodgments.
From here, select the relevant STP lodgment.
Follow the prompts to update the pay event and select the Final Event Indicator and again proceed to authorisation and lodgment.
PAYG Payment Summary Annual Report (PSAR)
For any payments made to employees or contractors that have not been reported via STP, payment summaries still need to be issued by 14 July and the payment summary annual report must be submitted to the ATO by 14 August.
Go to My Clients, select client, select Forms button. Select PAYG Payment Summary Annual Report.
This allows you to manually enter details or import an EMPDUPE file from your software to lodge the PSAR with the ATO. Payment summaries are only required for employee and contractor payments that have not been reported through STP.
This could include closely held payees, contractors with a voluntary withholding agreement or contractors for whom no ABN withholding applies or other payments not reported through payroll but for which a payment summary is required.
Check the ATO PAYG payment summaries forms and guidelines for more detail about the different types of payment summaries.
IAM STP Reporting Module
This is a stand-alone module for STP reporting purposes, for either business owners or registered agents.
The process is similar in that the final pay run of the year must be marked with the Final Event Indicator. For full details about using IAM STP Reporting Module, check our https://youtu.be/BYfFpbt-dN8
STP Finalisation Dates
Once the STP finalisation has been sent to the ATO, the employee’s information will be released in their myGov account and listed as ‘tax ready’.
Registered agents – remember you can set up templates to send reports for review, authorisations and declarations to business owner clients for their digital signature from GovReports integrated Digital Authentication platform.
Review Employee Details Now Before Finalising EOFY Payroll Events
Prepare as much as you can now so that you are able to finalise your data by 14 or 31 July and minimise the chance of errors or omissions that will later need amending. The end of the payroll year will be here sooner than you think!
Check our latest videos for more detail on the EOFY payroll finalisation process. You will find new videos for Payroll Events in GovReports and IAM STP Reporting for both registered agents and business users.