It may only be April, but End of Financial Year (EOFY) will soon be upon us.
If your business is like most Australian companies with 20 or more employees, the 2018/19 Financial Year will be the first year you report your EOFY figures to the ATO through Single Touch Payroll (STP).
To help you with the upcoming changes at EOFY, we wanted to give you a heads up on what you need to do to prepare yourself and your employees this July.
As soon as STP came into effect, payment summaries were no longer a legal requirement and employers do not need to supply them to their employees.
To help with the transition, Definitiv makes “Annual Statements” available in place of payment and ETP summaries. The Annual Statements are accessible to our client’s employees through their Definitiv account once your EOFY figures have been finalised with the ATO. These statements are not an official document for tax purposes but do provide similar information to a payment Summary.
If you are not a Definitiv customer, make sure you check with your current payroll software provider to see if they are offering any alternative documents.
It is essential your employees sign up and create their own myGov account. myGov is an Australian Government initiative and allows individuals to access their online government services, such as the ATO and Medicare.
With STP, as you are reporting directly to the ATO, once you have finalised the payroll at EOFY, employees will have direct access to their payment summary and income tax information through their myGov account. In myGov, payment summary information is documented in an ‘income statement’. This is the main reason why your employees need to have a myGov account.
For more information, visit the myGov website.
To help prepare your employees, we suggest sending them a communication about the upcoming changes; including the need to create a myGov account to access their payment summary information, i.e. income statement. If you are a Definitiv customer, one way to send the communication is through Definitiv’s announcement feature.
The ATO has even released an STP fact sheet for employees which you can include in your communication. You can download the fact sheet from the ATO website here.