As the financial year comes to a close, employers using Single Touch Payroll (STP) must finalise their employee data. This process not only ensures compliance but also presents an opportunity to streamline payroll operations, improve tax planning, and even reduce errors that could impact your financial standing.
What Is the Finalisation Declaration?
Employers must lodge a finalisation declaration by 14 July each year through STP. This enables employees to access tax-ready income statements via myGov, reducing administrative burdens like issuing payment summaries and lodging payment summary annual reports.
Maximise Efficiency and Accuracy with Financial Planning
Financial services professionals can help businesses avoid common mistakes during the finalisation process, such as:
- Finalising the wrong financial year – Timely, accurate reporting ensures businesses avoid unnecessary payroll tax issues and penalties.
- Including all employees – Ensuring casual, part-time, and terminated employees are finalised prevents compliance oversights.
- Managing payroll changes – If you’ve changed payroll systems or Payroll IDs, financial professionals can ensure smooth transitions and accurate year-to-date figures, avoiding income overstatements.
Closely Held Payees: A Strategic Opportunity
For businesses with closely held payees, including directors and family members, the finalisation deadline is 30 September. Engaging with financial services can ensure strategic payroll management, helping business owners align their personal and business tax planning efficiently.
Leveraging Financial Expertise for Amendments
If an error occurs after submitting your finalisation declaration, financial planners can guide you in making swift amendments. This will also help employees adjust their tax returns quickly, preventing future complications.
Supporting Employees with Financial Literacy
Employees often rely on their employers for tax-related guidance. Financial services can provide your team with clear communication strategies, ensuring they understand how to access their income statements through myGov and why it’s essential to wait until they are “tax ready” before filing. This reduces the risk of filing amendments and potential tax liabilities.
Need help with STP finalisation or broader financial strategies? Partnering with a financial advisor ensures accurate reporting, improves payroll processes, and supports your business's financial health year-round. Reach out to us at 02 8318 1545 or you can book an appointment to our live calendar to simplify your compliance and enhance your tax planning today!
