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Once you start reporting under Single Touch Payroll, you will no longer be required to issue a Payment Summary. Your final payment summary to employees is due 14th July. After this date your employees can access their income statement through the ATO via myGov.
You’ll have two weeks from the end of the payroll year to issue your payment summary so it’s worthwhile preparing now to make the process easy.
Here’s what you will need:
Payroll Checklist
Make sure you have all the necessary details for all employees, both current and any who have terminated throughout the year. The essential information is full name, date of birth, address, tax file number, and an email address if you are sending payment summaries electronically.
Review any terminated employees. Is the correct termination date recorded in your software? Are there any Employment Termination Payments (ETPs)?Review allowances paid to employees and check which ones are required to be reported separately.
Review salary sacrifice payments to superannuation for Reportable Employer Superannuation Contributions (RESC) amounts.Check any Reportable Fringe Benefit Tax (RFBT) amounts that should be included.
Do you plan to email payment summaries to employees? If so, advise employees of your intention to provide electronic versions and make sure the email address is secure and private. The electronic version must be non-editable and preferably generated directly from your payroll software.
Verify Your Payroll Numbers
It’s important to verify payroll figures before issuing payment summaries, in order to minimise the chance of errors and having to re-issue at a later date.
Once the payroll year is finalised at 30 June, you can then focus on analysing the payroll amounts for each employee and cross-checking against the numbers in your profit and loss accounts.
The end of the payroll year will be here sooner than you think! We can help make the process easier by reviewing and validating your payroll figures prior to issuing payment summaries.
Remember, this is the last year you will need to issue payment summaries. From 1 July, all employers must report to the ATO using Single Touch Payroll (STP). Do you need more information about STP? We can help you set up your payroll ready for STP reporting.
eleanor@ybaccountants.com.au