Payroll and Payment Summaries 2021 – what you need to know
The introduction of Single Touch Payroll (STP) requires more effort than usual on year end payroll finalisation.
Under STP 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.
Employers have until 14 July 2021 to complete all STP finalisations so employees may need to exercise some patience as this process is completed. For closely held employees only you have until 30 September 2021 to complete STP finalisation.
We saw many employers making errors in this process which required rework for both employers and employees so we recommend working through a reconciliation process. Our bookkeeping team can help with your year end review process.
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.