STP - payment summaries not required

[Santolin]

The ATO has advised we do not need to do payment summaries for 2018/19 if using STP. We've only been using STP for a few months so surely employees who terminated prior to the use of STP will not have had their payroll info sent to the ATO. Has MYOB discussed ths with the ATO?

For the ATO, wouldn't it would make more sense to run STP in conjunction with the preparation of PAYG Payment Summaries this year? I'm guessing anomolies will be rampant!

[bungy15]

Hi @Santolin 

The ATO actually advise that you do not need to provide payment summaries for those employees reported through STP.  As there are many employers  who started STP partway through this year there has been a lot of discussion on the forum on how to handle EOFY reporting.

For any employees who have not been paid through STP, ie terminated and casuals, you can do a $0 pay in an STP payrun, this creates a pay event and updates the YTD figures with the ATO. Or you can provide payment summaries and empdupe file for those employees. 

Cheers

Tracey

[Santolin]

Thanks Tracey

Given this employer has less than 20 employees (and therefore STP is not mandatory), is it possible not to do the EOFY finalisation for any of the employees but instead simply provide a payment summary and EMPdupe file for all employees in 2018/19?

[bungy15 · Accepted solution]

Hi @Santolin 

My understanding is that once you’ve started reporting through STP you do need to finalise through STP but I recommend you confirm that with the ATO.  Even though it’s not mandatory until next FY, once you’ve started you can’t stop and all other STP rules apply. 

Good Luck

Tracey

[Kingy16]

So further to this post can you confirm even though I've only been using STP for a month I need to lodge EOFY payroll thru STP and NOT generate payment summaries and empdupe file?

[bungy15]

Hi @Kingy16 

STP sends your employees YTD figures to the ATO, so once you start STP all employees you have paid through STP are up-to-date. 

The ATO website says that “you may be exempt from giving payment summaries and empdupe for the amounts you reported through STP.  To be exempt from issuing payment summaries to your employees you will need to make a Finalisation declaration”

If you do the Finalisation through STP then you won’t need to give payment summaries and send the empdupe. Just make sure all employees have been reported correctly, including any terminated. You can check what has been reported to the ATO by downloading the STP report through the Payroll Reporting Centre.

Hope this helps

Tracey