STP Finalisation for FY 2024 – due 14 July 2024
Did you know that a Single Touch Payroll 'STP' finalisation is required by employers to complete their STP reporting obligations for the financial year?
This process involves reviewing, finalising and submitting the employee information, including year-to-date (YTD) amounts, that has been reported to the ATO throughout the financial year via your STP software.
This is the process that provides the ATO with an income statement for your employees to be able to complete their income tax returns. The income statements outline the payments you have made to employees and the amounts you have withheld for tax purposes.
The STP finalisation is required by 14 July every year.
In case you fail to finalise by this deadline, you may be able to apply for an extension. However, extensions are only granted in exceptional circumstances, such as natural disasters or severe illness, and are not available for general business or operational reasons.
Your chosen STP accounting software will have a step-by-step guide on how to finalise STP:
Super Due Dates
Employee Superannuation is due every quarter by the 28th of the following month – not on the 28th but before the 28th!
To meet your employer super obligations, it is recommended to have your super lodged via your chosen payment method two weeks before the due date. Super is needed to be in the super fund by the due date. It is considered late if, for example, it is processed on the due date and reaches the fund after the due date.
It is critical to pay super before the due date, otherwise the super guarantee charge will apply. The ATO are cracking down on late super payments and it is one of their items they have been given budgetary funds to chase. The super guarantee charge is a penalty that you will be required to pay for not paying super on time. Even if have paid the super in full but late, the super guarantee charge form is required to be lodged. This form holds admin fees and interest charges which are all calculated based on when the form is lodged, not the date you paid the super in full. The ATO have the information to know when super is lodged late, so lodge the SGC form as soon as you have paid the late super. The ATO will still issue a penalty notice for late super if you haven’t lodged the super guarantee charge form. It is an ATO penalty that you don’t want to have to pay.
Super Guarantee Rate Increase
The super guarantee rate will also change from 1 July from 11% to 11.5%. Check your payroll settings to ensure the statutory rate is being used and not an entered rate that won’t automatically roll over. It applies to all income paid on or after 1 July 2024 (including backpay).
Tax Table Changes – from 1 July 2024
The tax rate has changed which means employees will have more in their pocket and less tax withheld for them. If you have set amounts in your bank to pay employees, these may need updating.
Please contact the team at Collins Hume on 02 6686 3000 if you're a business owner needing help or advice about getting your year-end payroll processes right.
Comments