As the end of financial year draws near, employees begin to get excited about lodging their tax returns and getting their refunds which in turn, puts pressure on their employers to provide their payments summaries – or group certificates (depending on your age!) This year, most employers and businesses will be on the Single Touch Payroll (STP) system and this means that employees will not receive any documentation regarding their annual earnings.
FACT: When registered for STP – employers are not required to provide employees with a final end of year payment summary.
FACT: Some employers will have until July 31st to complete the “STP Finalisation” process. This means employees may not have access to their year end information and be unable to lodge their tax returns. The ATO have recommended that employees “hold off” lodging their tax returns until employers have completed the process.
FACT: The STP Finalisation process replaces the old payment summaries. Upon completing the process, employers are:
- letting the ATO know that all pays for the 2020 year have been done
- the status of the employees income statement in myGov changes to “Tax Ready” and this means they can now lodge their tax return
FACT: Every time an employer who is STP registered processes a pay, this information goes to the ATO.
FACT: Employees can access their Employment Income Statements through any of the following ways:
- Access myGov and download from there
- Via a registered tax agent who can assist in lodging the tax return
- By phoning the ATO who will provide this over the phone – 13 28 61
Here is a great fact sheet to provide your employees if they ask for their payment summary/group certificate.
All IQ clients who are employers should have received an email advising the due date for the STP Finalisation. If you have not, please contact the office as a matter of urgency.