Finalisation Declaration through Single Touch Payroll (STP)
A reminder to employers reporting through STP (which should be all employers unless an exemption or deferral applies), you need to finalise payroll information for the 2022/23 financial year by lodging a STP Finalisation Declaration with the ATO by 14 July 2023. The finalisation declaration can be completed once the STP information for all employees is confirmed as correct.
Employers that finalise through STP are not required to provide payment summaries to employees or lodge a payment summary annual report to the ATO. Employees can access their payroll information for their 2023 tax return through a registered tax agent or their myGov account.
We will be in touch shortly with our payroll clients in relation to completing their finalisation declaration. Should you require any further assistance please contact our office.
Single Touch Payroll (STP) Phase 2
Most digital service providers (DSPs) including QuickBooks and Xero have now transitioned to STP Phase 2 reporting. The expansion requires employers to report extra information to the ATO each time they file their payroll and includes changes to payroll categories, allowances, salary sacrifice reporting and income types.
Employers that have not already started Phase 2 reporting should ensure they are aware of the changes required and ask their DSP when their product will be ready if they don’t already know.
Closely Held Payees
The ATO is reminding employers that amounts paid to ‘closely held payees’ should now also be reported through STP. A ‘closely held payee’ is an individual directly related to the entity they receive payments from. For example, family members of a family business, directors or shareholders of a company and beneficiaries of a trust.
The due date of STP finalisation declarations for closely held payees is 30 September 2023.
There are concessional reporting options for closely held payees which include:
- Reporting actual payments on or before the date of payment (along with arm’s length employees)
- Reporting actual payments quarterly
- Reporting a reasonable estimate quarterly.
If you have any questions or require assistance with any of the topics raised in this update, please contact our office.
Reminder of Superannuation Guarantee (SG) Rate Increase
Employers are reminded that the SG obligation for the 1 April 2023 to 30 June 2023 quarter is due by 28 July 2023.
If the correct amount of SG is not paid by an employer on time, they will be liable to pay the SG charge, which includes a penalty and interest component.
As a reminder, from 1 July 2022, the compulsory SG rate increased to 10.5% (previously 10%). The compulsory SG rate will increase again to 11% for the period 1 July 2023 to 30 June 2024. Please ensure your payroll systems are updated by the start of the next income year for the increased SG rate.