It’s nearly time to make a finalisation declaration for Single Touch Payroll. There is no need to issue payment summaries to employees you have reported through STP.
Employers must complete the finalisation declaration by 14 July for employees. Employers with a mixture of employees and closely held payees have until 30 September 2022 to make the declaration.
Small employers (fewer than 19 employees) that only pay closely held payees have until the payee’s income tax return due date. Employers will need to liaise with the individual payee about the exact tax return due date.
For anyone not reported through STP you still need to issue a payment summary . You will also need to submit a payment summary annual report (PSAR) for any payments outside the STP system.
STP Payroll Checklist
- Check that your business details, including ABN, registered name and address and authorised contact person are correct in your software.
- The essential information is full name, date of birth, address and tax file number.
- Review any terminated employees.
- Review salary sacrifice payments to superannuation for Reportable Employer Superannuation Contributions (RESC) amounts.
- All ordinary earnings, loadings and penalties, allowances, commissions, bonuses, leave payments and termination payments.
- You may have other unusual payments such as those made under a voluntary agreement for contractors or labour-hire arrangements—check that you have reported them correctly.
Finalising Single Touch Payroll
It’s important to verify payroll figures before finalising. In order to minimise the chance of errors and having to re-issue at a later date. The process is the same whether you are using STP Phase 1 reporting or Phase 2.
Talk to us today if you would like us to make the STP end of year process easier. The end of the payroll year will be here sooner than you think!