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Preparing for the end of year 2020

Written by Helen Wood

This year many SME’s would be their first time to lodge the wages via Single Touch Payroll. (STP)

The process is now automated via the software and is now a requirement to be lodged from the pay roll system for all employers reporting via STP.

Client communications and Deadlines.

All clients should have clear information when you require work to be process by. They should be aware that if they miss their due dates, you may not be able to submit their lodgements by the required time.

One of the main requirements is to reconcile work and do a Finalisation from the software reporting to the ATO. When you finalise employee’s records for the year, the status of the employee’s “income statement” (formerly know as payment Summary or group certificate) in myGov will change to Tax ready.

This means they will be able to pre-fill and lodge their tax return.

Important dates –

14th July – employers 20 or more employees to be finalised and reported to the ATO via STP

31st July – employers with 19 or less employees to be finalised and reported to the ATO via STP

Action to take before.

Review Payroll settings and reporting categories to be correctly reported as per the ATO requirements.

Review employees’ details to be accurate as at 30.06.2020.

Vey important to have all Terminated employees terminated and finalised by the 14th July.

Finish entering all pays for June 2020

Reconcile the payroll to the Balance sheet clearing accounts and ensure the amounts in the Profit and Loss agree with the Payroll summary reports.

Fix any errors using the procedure required by the software used.

Contact the client’s accountant for any RFBA and RESC to be included in the Income Statement.

When happy all reconciliation’s have been completed you can commence the Finalisation process as per the software instructions. Please note- this can only be done by a BAS/Tax agent or the Client.

BAS agents are to ensure they have a signed authorisation from the client to do the Finalisation.

Other dates to note

18-23 June: Superannuation Payments for those wanting to claim deductions this year. Dates depend on lodgement method/software.

25th June: FBT annual return deadline

30th June : most employers should be on STP- Closely held employees and those with deferrals or exemptions maybe exempted.

5th July: ATO start processing Tax Returns

28th August Taxable Payments Annual Report.(TPAR)