Checklist for End of Year Payroll Processes
End of financial year means it is time to finalise the payroll for your employees ready for the tax season. To help you in this process, we have prepared a checklist for you to follow.
With most businesses using Single Touch Payroll (STP) this year, the process is very streamlined making it much easier to get this information to the Australian Taxation Office. You will no longer need to prepare payment summaries for employees so it is important that you communicate to your employees that they can find their payment summaries on their MyGov account. However, they will need to wait until it has been marked as “Tax Ready” once you have finalised STP before lodging their tax return.
For all employers:
Step 1. Finalise all pay runs for the 2020 financial year
- If you’re on STP, these pay runs should be marked as ‘filed’.
- Ensure the payment date is prior to 30 June to make sure the pays are reported in the financial year.
For Xero Payroll clients:
If you joined Xero part way through the year, you will need to make sure that your opening balances are correct. If this applies to you, detailed information can be found here.
For MYOB Payroll clients:
If you use another payroll provider, you will need to refer to their instructions. We have included the link for here for payroll in Reckon software.
If you are not registered for STP for the 2020 Financial Year, you will still need to prepare and lodge payment summaries for your employees. The instructions for this process can be found here for Xero, MYOB Essentials and MYOB AccountRight.
Once the STP has been finalised, you can advise your employees that their information is ready on myGov to lodge their tax returns.
The deadline for processing the STP finalisation is:
- 14 July 2020 for employers with 20 or more employees
- 31 July 2020 for employers with 19 or less employees
The Macro Team are here to help and if you require any assistance with this process, please do not hesitate to call or email us.
Date published: 2 July 2020