- End Of Financial Year STP Finalization Process
- Key Dates For STP Finalization Events
- Employee Point-Of-View
- STP Changes As Of 1 July 2021
End Of Financial Year STP Finalization Process
Each software provider will have their own specific STP finalization process that is required to be followed. Below are links to helpful guides & instructions for the most commonly used payroll software types:
Key Dates For STP Finalization Events
- Employers with no closely held employees - Due date for end of year STP finalization is 14 July 2021
- 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 finalization is 30 September 2021 for the closely help employees, while all other employees are due 14 July 2021
- Employers who have a mix of closely held and arm’s length employees and have 19 or fewer employees overall (Small Employer) - An exemption is in place until 30 June 2021, where-by amounts paid to closely held employees are not required to be reported via STP, while all other employees are due 14 July 2021
There are generally a few common questions that employers receive from their employees in relation to STP. Here are a few helpful tips to assist with answering these questions:
- Physical paper payment summaries are no longer issued
- Employees can access their end-of-year income statements through their personal myGov account
- Once the employer has processed the STP finalization event, the employees will see the status of their payment information on myGov change to ‘”tax ready”.
STP Changes As Of 1 July 2021
Concessions were previously in place for closely held employees (small employers only) and micro-employees, where-by there was no requirement to report via STP through to 30 June 2021.
However, as of 1 July 2021, STP compliance is compulsory for all employers, including micro-employers and those who are classified as small employers with closely held employees.
The ATO allow three ways to report amounts paid to closely held employees
1. Report actual payments on a quarterly basis
2. Report a reasonable estimate quarterly
3. Report actual payments on or before the date of payment
These STP reports are required to be lodged via an STP-enabled solution approved by the ATO.
Our team at BLG Business Advisers can provide more information relating to your 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!