The finalisation dates
- Usually the 14th of July, however due to COVID-19 if you need additional time you will have until the 31st of July.
- If you have 20 or more employees, you should be you should be reporting all closely held payees each payday, along with arms-length employees. The finalisation date for closely held payees is the 30th of September.
- For employers with less than 20 employees and are therefore considered small, the finalisation due date will be the payees income tax return due date.
- For an employer with a mixture of closely held and arms-length employees, the due date for the closely held payees is the 30th of September and for all other employees it is due on the 14th of July each year.
When finishing your finalisation declaration
- Make sure that your information is correct.
- if you can’t make a finalisation declaration by the due date for any reason, you must apply for a deferral.
- You can finalise the data earlier if you have completed it, the sooner you finalise the information, the sooner your employees will be able to begin their tax return.
When you have finalised and reported your employees’ information through the Single Touch Payroll process, you are exempt from:
- Providing payment summaries to your employees
- Lodging a payment summary annual report.
Note: if you have not completed it, you must still do both of these.
Making Amendments
If you recognise that you need to make an amendment, you should do this as soon as possible. You should also inform your employee if it will have any effect on their income statement, as they may have already lodged their tax return. If this is the case, they must also make an amendment.
Important information for your employees
- You are no longer required to provide them with a payment summary for the information you have reported and finalised.
- They can access their year-to-date and end-of-year income statement through MyGov or with their registered tax agent.
- They should wait until their income statement is ‘tax ready’ before lodging their tax return.
- To check their personal details with the ATO and with you (the business owner), and update if necessary.
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au