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"Finalisation" replaces payment summaries

The most significant and time-saving benefit of reporting via STP is that you are no longer required to issue employee payment summaries at the end of financial year or at termination. Payment summaries have been replaced by finalisation.

At the end of the financial year, you will finalise each employee. This can be done either in your STP batch submission for the final pay of the financial year or as an extra batch submission after the final pay. Finalisation tells the ATO that you have provided all the required information for the financial year. The ATO will then pre-fill the employee's income tax return in myGov and mark it as "tax ready" for the employee or tax agent to finish and submit their return online.  

Finalisation with your final pay

If you have been reconciling your employee year-to-date values throughout the financial year and have no reportable fringe benefits to enter or adjustments to make, you can finalise your employees when you submit your final pay STP batch. You will simply select to finalise all employees in the batch and submit the batch as usual. 

Your EOY process is: 

  • Process last pay for the year
  • Submit STP batch for final pay and include finalisation
  • Archive your live company and create history (copy) company 
  • Process end of year in your live payroll company
  • Prepare for the new financial year including 2019/20 tax scales


Finalisation after your final pay

If you wish to review and reconcile the information being sent to the ATO, enter reportable fringe benefits or make adjustments, you will finalise your employees as an extra STP batch submission after your final pay (but before 14 July 2019).

Your EOY process is: 

  • Process last pay for the year and submit STP batch as usual
  • Reconcile
  • Finalise employees via STP
  • Archive your live company and create history (copy) company 
  • Process end of year in your live payroll company
  • Prepare for the new financial year including 2019/20 tax scales


Key differences between payment summaries and STP finalisation 

Payment summariesSTP finalisation
Reconcile several reports for the whole yearReconciling throughout the year
Check for issuesIssues are resolved with each batch submission
Create payment summariesFinalise via STP replaces payment summaries
Print and issue payment summaries

ATO pre-fills employee income tax return in myGov 

Create empdupe fileNo longer required
Upload empdupe to ATO business portalNo longer required
If an employee misplaces a payment summary, required to reissueEmployee information is always available via myGov



Not yet reporting via STP?

It’s not too late to start STP reporting for EOY.

From 1 July 2019 STP is required for all employers, so why not get started now and avoid payment summaries this EOY. Talk to your consultant to get started on you STP journey.



EOY webinars

Learn how to prepare and process EOY with STP. We’ll take you through the new simplified process which no longer requires payment summaries. For those yet to commence STP reporting, we will also cover the year-end process with payment summaries.

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