According to the Tax Office, bookkeeping clients who started reporting through STP before 1 July 2018 will be contacted with information about how their employees’ payment summary for 2017–18 may change.
Further, the ATO notes that employer clients who are using STP reporting are not required to provide their employees with payment summaries for the information they report through STP, while some employers may choose to provide payment summaries for the first year of STP reporting.
Further, income statements will replace payment summaries, and will be available through pre-filling and myGov.
The income statement has three categories: Tax ready, Not tax ready and Year-to-date. Only tax ready income statements are complete and will be available through pre-filling.
“Income statements may not be tax ready until 14 August this year. Employers have until this date to finalise their STP data,” said the ATO.
Speaking to The Bookkeeper, Association of Accounting Technicians chief executive, Rochelle Park said bookkeepers should be communicating with their clients to ensure they meet their compliance obligations.
“For early adopters of STP who opt to take up the option of not providing payment summaries, but rather finalising the payroll information as per the new STP end-of-year reporting regime, It is advisable that bookkeepers check the employees capacity to access their ‘payment summary’ information via their myGov accounts,” said Ms Park.
“There are quite a few considerations and steps to be taken in readiness for STP reporting, and bookkeepers need to be communicating with their clients about these requirements and organising execution plans to suit individual client needs and obligations.”
Jotham Lian is the news editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
With a focus on breaking news and exclusive analysis, Jotham keeps Accountants Daily readers up to date with company moves, tax updates and essential business and client strategy.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.