Payroll and Payment Summaries – what you need to know
The introduction of Single Touch Payroll (STP) has meant that tax time this year will be a little different.
Under the new system employers must report pay, taxes and superannuation information directly to the ATO every payday through STP.
Employers using STP will not give employees a payment summary as they usually would at this time of year. Instead, employees will get an end-of-year income statement in ATO online services through myGov.
All employers will eventually report in this manner.
Employers that do not report to the ATO using STP will still need to provide a payment summary at the end of financial year.
Employers and BAS agents have until 14 July 2020 (more than 20 employees) or until 31 July 2020 (less than 20 employees) to complete all STP finalisations so employees may need to exercise some patience as this process is completed.
Helpful guides for employers
No one said this process would be easy. STP is only in its second year and then JobKeeper was added into the mix. It is essential that you review and reconcile your payroll and super records prior to finalising STP reports in order to avoid later updates for both you and your employees.
If you need help, please give us a call.
Our bookkeeping team is growing as many clients discover the benefits of our comprehensive service. See our Bookkeeping packages. Service options and assistance includes
- Set up and fully utilise Xero for business
- Improvement in the quality of bookkeeping
- Answering payroll and bookkeeping queries
- Taking this headache away. Our team help manage your bookkeeping and payroll, giving you peace of mind, assessment ready records and time back in your day to focus on growing your business.
Helpful guides for employees
While you may be eager to get your tax sorted early this year, however to avoid errors and rework from missing information it may pay to wait.
As always, please contact us if you have any questions.