Forum Discussion

BJ_Werder's avatar
BJ_Werder
Experienced User
4 years ago
Solved

Finalising an employee now, not at the end of the payroll year

We have notified the ATO of an employee termination and that employee would like us to finalise them now, not when we complete our STP finalisation at the end of the payroll year.   The 'Terminate ...
  • Tracey_H's avatar
    Tracey_H
    4 years ago

    Hi BJ_Werder 

     

    Thanks for your post. Finalising an employee in the Payroll reporting centre>>EOFY finalisation tab lets the ATO know that the employee won't be receiving any further pays from the employer. As such, the process is the same. At the EOY you won't need to finalise the employee again, just ensure you reconcile their YTD amounts before you finalise.

     

    Something to note when finalising an employee during the payroll year, this is from the ATO website:

     

    Even if you finalise an employee record partway through the financial year, we will not pre-fill the information into your employee’s tax return until after the end of the financial year. The employee will need to follow the current process for lodging a part-year tax return. This commonly affects employees who are leaving Australia once their employment has terminated.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Tracey_H's avatar
Tracey_H
Former Staff
4 years ago

Hi BJ_Werder 

 

Thanks for your post. Finalising an employee in the Payroll reporting centre>>EOFY finalisation tab lets the ATO know that the employee won't be receiving any further pays from the employer. As such, the process is the same. At the EOY you won't need to finalise the employee again, just ensure you reconcile their YTD amounts before you finalise.

 

Something to note when finalising an employee during the payroll year, this is from the ATO website:

 

Even if you finalise an employee record partway through the financial year, we will not pre-fill the information into your employee’s tax return until after the end of the financial year. The employee will need to follow the current process for lodging a part-year tax return. This commonly affects employees who are leaving Australia once their employment has terminated.

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

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