If you are reporting your payroll to the ATO through Single Touch Payroll (STP), you must complete the end of year by submitting an STP Finalisation event. For most employees, this is due by July 14.
This step provides your employees with access to their payroll information so that they can complete their tax returns for the financial year. It also means you do not need to provide payment summaries to employees, or lodge a payment summary annual report to the ATO.
We’ve outlined the process of the STP finalisation event below, to help you submit the right information. But if you have any questions regarding the process, please give the Colledges team a call. We’re here to help.
Single Touch Payroll has made reporting your employee obligations to the ATO a simpler process. You can find out more here.
What is STP and how does it work?
Steps to lodge a STP finalisation event
Before finalising, you must complete the following:
- Check that all pays have been entered and are up to date for the financial year
- Fix or update any incorrect or missing data from your STP payroll events
- Confirm that all pay runs submitted in the financial year have been accepted by the ATO.
Lodge the STP Finalisation event
Once your payroll information is complete for the financial year, you are now ready to lodge the finalisation event.
Your accounting package will have a section to finalise STP for the financial year. You can begin this step only once you’ve lodged your last pay run for the financial year.
Steps:
- Create the finalisation event in your accounting software
- Confirm your payroll data and make sure your year-to-date earnings are correct
- If your employees received a Reportable Fringe Benefit (RFBA), or any Reportable Employer Superannuation Contributions (RESC), you will need to report these figures
- Complete the declaration and lodge the finalisation event
- Notify your employees that this event has been completed so that they can begin their tax returns.
Some commonly asked questions about end-of-year STP Finalisation:
1. What happens if I have not finalised a pay run?
If you lodge an STP finalisation event before you finalise your pay runs for the financial year, you will need to lodge an amendment event to provide the correct figures to the ATO.
2. Do I need to lodge an STP event before lodging the STP finalisation event?
Yes, you do. If you have not lodged any STP/pay events, your finalisation event will not be accepted.
3. Our business changed from a weekly to fortnightly pay schedule. Do I need to create a finalisation event for both?
You only need to lodge a finalisation event for the current pay schedule. If you are now only using a fortnightly schedule, this is the only payroll schedule you must lodge a finalisation event for.
4. Do we need a finalisation event for both the normal pay schedules and ad hoc pays?
No. Any payroll information and earnings for employees which include standard pay runs and ad hoc pays, will be included in the finalisation event.
5. Can I work on the next financial year pay runs, even if I haven’t yet submitted the STP finalisation event?
Yes. You can start your normal payroll runs for the new financial year, even if you haven’t yet submitted your STP finalisation event.
If you need help to finalise your year-end STP, call the team at Colledges
We’re here to help you. If you’re unsure about the end of year finalisation event for STP, we’ll guide you through the process to make sure all your reporting obligations are up to date, that your payroll is ready and that you are in a position to successfully submit your documentation to the ATO.
And, if you are new to Single Touch Payroll, or if you have not yet started using the STP process, we’ll help you set this up in your accounting and payroll systems and procedures. Please call the team at Colledges on (03) 9851 6500 or email us at hello@colledges.com.au.
