Navigating STP End-of-Year Finalisations

FY24 has come to and end, but the due dates for Single Touch Payroll (STP) end-of-year finalisations are fast approaching. If you are an employer or employee, here are the key dates, information, and processes you should be aware of.

 

Key Dates for STP End-of-Year Finalisations

 

Dates for STP End-of-year finalisations depend on whether the payee is classified as closely held or at arm’s length. Closely held employees refers to individuals related to the entity with which they receive the payments, such as family members in a family business or directors. Arm’s length payees refers to all other payees.

The due dates for each payee and business are detailed below:

• For employers with no closely held payees, STP finalisation is due 14 July
• For small employers (19 or fewer employees) with only closely held payees, the finalisation is due by the payee’s income tax return date
• For employers with both closely held payees and arms-length employees, the finalisation for closely held payees is due 30 September while all other employees are due 14 July

 

Making, Amending, & Accessing your STP Finalisation Declaration

 

1. On 1 July, employees will see the status of information through myGov change from ‘year-to-date’ to ‘not tax ready’
2. Make your declaration. Ensure your STP information is correct and finalise the data earlier if it’s ready or apply for a deferral if you are unable to make a finalisation declaration by the due date
3. Amend your declarations where necessary. If you identify a mistake after submitting a finalisation declaration, make your amendments through your STP solution and inform your employees of the adjustment as they may need to correct their tax return. You must correct errors within 14 days of detection or by the date you would be due to lodge your next pay event.
4. Once you have made your finalisation, your employees will see the status of their payment information change from ‘not tax ready’ to ‘tax ready’
5. After their income statement is deemed ‘tax ready’, employees can lodge their tax returns
6. Communicate with your employees. Advise your employees that after submitting a finalisation declaration, you are no longer required to provide them with a payment summary, and that they can access their end-of-year income statement through myGov or speaking to their registered tax agent. They should also be aware of when they can lodge their tax return
7. Finally, ask that they check their personal details and update with you and the ATO where necessary to access their STP information

 

Interested in learning more? Call or click to discuss with a Macro Group team member.

The Macro Group Team

 

Date: 12/07/2024

The Macro Group Limited AFSL:485843 Tax Agent Number 24 76 5236.

The information in this article  contains general information only. We have not taken into consideration any of your personal objectives, financial situation or needs. Before taking any action, you should consider whether the general advice contained in this communication is appropriate to you having regard to your circumstances and needs, and seek appropriate professional advice if you think you need it. We recommend that you consult a licensed or authorised financial adviser if you require financial advice that takes into account your personal circumstances.