The ATO has issued a reminder to employers who report through STP that they will need to finalise payroll information for the 2020 income year by making a final declaration after their last pay event for the financial year.
The due date for making finalisation declarations is:
- 14 July 2020 for employers with 20 or more employees; and
- 31 July 2020 for employers with 19 or fewer employees.
- 30 September 2020 for closely held employees.
Employees that finalise through STP are not required to provide payment summaries to employees and lodge a payment summary annual report to the ATO.
Instead, employers should inform their employees they will be able to access their payroll information (for preparation of their 2020 tax return) through a registered tax agent or via ATO online services via MyGov.
If you are unable to make your finalisation declaration by the due date, you will need to apply for a deferral.
For payments to your employees that were not reported through STP, you will still need to provide a payment summary to your employees and provide the ATO with a payment summary annual report.
For more information on finalisation declarations please refer to https://www.ato.gov.au/business/single-touch-payroll/start-reporting/end-of-year-finalisation-through-stp/