Background
Prior to Single Touch Payroll (STP), Employers were required to provide their Employees with a Payment Summary at the end of each Financial Year, as well as completing the Payment Summary Statement for their business.
These forms are no longer required with STP.
Instead, all you need to do now, is lodge the FY2020 Final STP File and the ATO will update their systems accordingly and use this information to pre populate in your employee's personal tax returns.
Things to note before submitting the FY2020 Final STP File
Prior to submitting the Final STP for FY2020, we suggest that you ensure
- You have completed all of your employees payslips for the financial year
- Have reconciled their payments with your Accounting system.
- You may also want to have handy the annual YTD figures for each employee (shown in their last payslip for the Financial Year) so you can confirm the amounts you are reporting to the ATO for FY2020 are correct.
- If you have included a number of Taxable Allowances in the employees Payslips during the Financial Year you will have the chance to amend the values, but not their Descriptions.
- If you want to amend the Descriptions you will need to do this in a payslip prior to lodging that employees initial FY2020 Final STP File.
In addition to the above, it is important to understand the following:
- If you need to change the values after you have submitted the FY2020 Final STP File, you can.
- This can be achieved by resubmitting another FY2020 Final STP File with updated values.
- If you have already submitted a FY2020 Final STP File and decide to create another payslip for a particular employee, you will need to lodge another FY2020 Final STP File for that employee.
- However, you will need to manually enter the revised values in the subsequent FY2020 Final STP Files
- If you are unsure about this process we suggest you go through the process without lodging the actual STP file as this will give you the opportunity to familiarise yourself with what will be reported and for you to review the values prior to actually lodging them
How to Complete the FY2020 Final STP File
When you are satisfied that you have reconciled the payslip YTD values for your staff then you can complete the process as outlined below:
When using a Mobile Device you need to do the following:
1) Go to the Settings Screen
2) Select 'FY2020 Final STP File'
3) Read the information noted in this screen and ensure you are ready to proceed.
When you are ready, click the 'Proceed' button'
4) You will then be presented with a 'Pre Lodgement Report' that displays a summary of the information we have recorded for each employee.
At this point you have the option to 'Lodge File' or 'Edit Amounts'.
If you choose 'Lodge File' please go to Step 11 below.
5) If you choose to 'Edit Amounts', then you will see the screen below that will list all of your employees that have had a Payslip processed for them during FY2020, which can include both Active & Inactive Employees.
You then have the option to Select the employee(s) you want to include in the FY2020 Final STP File and click the 'Continue' button.
Note: It is generally expected you will select all of your employees for the first time you do this, but you may need to make adjustments later, or you may not have completed an employees pay details when you go to lodge the first time, so you are able to choose the employees you want to include.
In this example we have not selected 'Tony Stark' as he still has some final payslip issues that need to be resolved. Tony will be included in a subsequently FY2020 Final STP File.
6) Each Employee you have selected will then be individually displayed so that you can Review and Edit any values previously included in their payslips. This will allow you to make any corrections you deem necessary, prior to lodgement with the ATO.
Note: You are able to edit any values in the grey fields.
The '$' values will be taken from the YTD values from the employees most recent Payslip.
When you are happy with the values displayed, click the 'Continue' button to bring up the next Employee.
7) The fields displayed in these 'Review FY2020 Employee Payment' screens will depending on what Payslip options have been used during the financial year for that employee. In the example below for Diana Carter, she has received a number of 'Allowances', had 'Fees' & 'Workplace Giving' amounts deducted from her pay and had a 'Salary Sacrifice' arrangement in place. Therefore she has more fields displayed for review than Bruce Banner above.
8) If you have an employee that has a number of Allowances that you would like to consolidate, then you should enter the consolidated amount in one option and reduce the other options accordingly.
As an example, if you wanted Diana Carter to only have $5,000 as a Taxable Allowance for 'Transport' and no other Allowances, then you would enter the following amounts:
9) When you have reviewed all of your Employees, an updated 'Pre Lodgement Report' will be displayed to reflect the Employees you have just reviewed and the values you have Reviewed and/or Updated.
If you are happy with these values, you should click the 'Lodge File' button. If you need to make amendments, you can start the review process again by selecting the 'Edit Amounts' button.
10) After clicking the 'Lodge File' button, you will need to complete the standard STP File Declaration by entering you name in the Signature field below:
11) When you have entered your name, the 'Lodge STP File with ATO' button will change colour and enable you to click on it.
12) This will then Lodge the FY2020 Final STP File with the ATO and take you to the 'Completed' STP Screen, where the file will have a status of 'Pending ATO Response'. You will be able to see the status of the Lodgement in the STP screen
13) This should then move to 'Completed' after the ATO has validated the file and updated their systems accordingly
When using a PC you need to do the following:
1) Go to the Settings Screen
2) Select 'FY2020 Final STP File'
3) Read the information noted in this screen and ensure you are ready to proceed.
When you are ready, click the 'Proceed' button'
4) You will then be presented with a 'Pre-Lodgement Summary' that displays a summary of the information we have recorded for each employee.
At this point you have the option to 'Lodge File' or 'Edit Amounts'.
If you choose 'Lodge File' please go to Step 10 below.
5) If you choose to 'Edit Amounts', then you will see the screen below that will list all of your employees that have had a Payslip processed for them during FY2020, which can include both Active & Inactive Employees.
You then have the option to Select the employee(s) you want to include in the FY2020 Final STP File and click the 'Continue' button.
Note: It is generally expected you will select all of your employees for the first time you do this, but you may need to make adjustments later, or you may not have completed an employees pay details when you go to lodge the first time, so you are able to choose the employees you want to include.
In this example we have not selected 'Tony Stark' as he still has some final payslip issues that need to be resolved. Tony will be included in a subsequently FY2020 Final STP File.
6) Each Employee you have selected will then be individually displayed so that you can Review and Edit any values previously included in their payslips. This will allow you to make any corrections you deem necessary, prior to lodgement with the ATO.
Note: You are able to edit any values in the grey fields, highlighted in red below.
The '$' values will be taken from the YTD values from the employees most recent Payslip.
When you are happy with the values displayed, click the 'Continue' button to bring up the next Employee.
7) The fields displayed in these 'Review FY2020 Employee Payment' screens will depending on what Payslip options have been used during the financial year for that employee. In the example below for Diana Carter, she has received a number of 'Allowances', had 'Fees' & 'Workplace Giving' amounts deducted from her pay and had a 'Salary Sacrifice' arrangement in place. Therefore she has more fields displayed for review than Bruce Banner above.
8) If you have an employee that has a number of Allowances that you would like to consolidate, then you should enter the consolidated amount in one option and reduce the other options accordingly.
As an example, if you wanted Diana Carter to only have $5,000 as a Taxable Allowance for 'Transport' and no other Allowances, then you can enter this as follows:
9) When you have reviewed all of your Employees, an updated 'Pre Lodgement Summary' will be displayed to reflect the Employees you have just reviewed and the values you have Reviewed and/or Updated.
If you are happy with these values, you should click the 'Lodge File' button. If you need to make amendments, you can start the review process again by selecting the 'Edit Amounts' button.
10) After clicking the 'Lodge File' button, you will need to complete the standard STP File Declaration by entering you name in the Signature field below:
11) When you have entered your name, the 'Lodge STP File with ATO' button will change colour and enable you to click on it.
12) This will then Lodge the FY2020 Final STP File with the ATO and take you to the 'Completed' STP Screen, where the file will have a status of 'Pending ATO Response' . You will be able to see the status of the Lodgement in the STP screen
13) This should then move to 'Completed' after the ATO has validated the file and updated their systems accordingly.
Questions
Q - Can I lodge a FY2020 Final STP file for specific employees who have already finished employment and will not be getting any more payslips?
A - Yes, you can lodge a FY2020 Final STP file for a specific employee(s) who have already finished working with you, you do not need to wait until 30 June 2020 to do this.
Q - What do I do if I have already lodged a FY2020 Final STP File and then decide to re-employ the staff member and make subsequent payslips in the financial year?
A - You can always make subsequent payments to your employees after you have lodged a FY2020 Final STP File, using the standard Process Payroll functionality. When you do this, the information in the STP file for the subsequent payslip, updates the ATO systems to inform them that the employee is now working for you again. You will then have to lodge another FY2020 Final STP File for that employee at the end of the financial year, so that the ATO will then know they have received all of their pay for FY2020 and can use that information to enable the employee to complete their tax return.
Comments
0 comments
Please sign in to leave a comment.