End Of Financial Year STP Finalisation Process
Xero, QuickBooks and MYOB all have their own STP finalisation processes that need to be followed to ensure your employees have the correct information to lodge in their tax return. Below are links to some helpful guides & instructions for the most commonly used payroll software:
Key Dates For STP Finalisation Events
Depending on your situation you may have a different due date that you will need to complete your STP finalisation by:
- Employers with no closely held employees - Due date for end of year STP finalisation is 14 July 2023
- Employers who have a mix of closely held and arm’s length employees and have 20 or more employees overall - Due date for end of year STP finalisation is 30 September 2023 for the closely held employees, while all other employees are due 14 July 2023
- For small employers (19 or fewer employers) who only have closely held payees the due date for end of year STP finalisation the due date will be the payee’s income tax return due date.
There are generally a few common questions that you may receive as an employer in relation to STP. Here are a few helpful tips to assist with answering these questions:
- How do I access my wages for the year?
Employees can access their end-of-year income statements through their personal myGov account or via their accountant.
- How will I know when I can lodge my tax return?
Once the employer has processed the STP finalisation event, the employees will see the status of their payment information on myGov change to "tax ready".
Single Touch Payroll Phase 2
Since 1 January 2022 the ATO has expanded the STP system dubbed “STP Phase 2” which sends additional information to the ATO each time you lodge a pay run. Primarily the “gross wage” figure that was previously lodged to the ATO as one figure is now split out into all of the components that make up that amount, including:
- Ordinary hours
- Bonuses and commissions
- Directors’ fees; and
Xero was the last of the major software providers to adopt STP Phase 2 and as of 31 March 2023 it has now enabled the lodgement of pay runs via the STP Phase 2 system. Below are some links for instructions on how to set up STP Phase 2 with some of the common payroll products:
BLG Business Advisers are Wollongong Accountants who service all over Australia and are always ready to help you out. Our team can provide more information relating to your accounting and payroll software options, so please feel free to talk with us for further advice tailored to your needs.
We wish you and your business every success!