You may be exempt from giving payment summaries to your employees and a payment summary annual report to us for the amounts you’ve reported through STP. This information will be made available to your employees online through myGov or via their registered tax agent. Your employees can also request a copy of this information from us. To be exempt from issuing these payments summaries to your employees, you will need to make a STP finalisation declaration. This declares you have provided all required information for the financial year through your STP reporting. You make a finalisation declaration by providing a finalisation indicator for an employee (including directors and contractors) as part of your STP reporting.
STP Finalisation declarations for arm’s length employees are due by the 14th July 2021, however due to the impacts of Covid-19 the ATO recognises this may be difficult, so employers have until up to 31 July 2021 to complete their declarations. Though if you are able to complete your declaration earlier, it is important that you do so that your employees can lodge their tax returns.
The finalisation due date for closely held payees is 30 September 2021 with a closely held payee being an individual directly related to the entity from which they receive payments.
- family members of a family business
- directors or shareholders of a company
- beneficiaries of a trust.