End of Financial Year is here!

End of Financial Year

2020 has certainly been a year that many of us would like to leave behind.  As we enter the new financial year many businesses are taking time to rebuild and re-invent themselves to come back in 2021 bigger and better than before. 

I think we need to all stop and reflect upon how resilient we are.  Congratulate yourself on what you have achieved in this unprecedented period rather than what you may have lost.  If we can get through this, then when we put our minds and resources together, we really can achieve anything.   

End of Financial Year Advice

As tax time fast approaches, it is important not to rush to get your return lodged, rather ensure that you have all your documents in order before preparing your 2020 tax return. 

Most employees will not be receiving payment summaries as in previous years but will have access to their Income Statements online through MyGov.  Employers have until 14 July to finalise these income statements.  Health funds also often take a couple of weeks to finalise their year-end information. 

Once you have everything together, please call or email me to make an appointment.  Please note that I will be conducting most appointments via telephone, email or Zoom this year due to COVID.

Single Touch Payroll (STP)

From 1st July 2018, large employers (those with 20+ employees) adopted single touch payroll (STP) and small employers (less than 19 employees) were required to register from 1st July 2019.

With STP, salary information is automatically transmitted to the ATO each time you get paid. This also makes the year-end process very quick and easy.  You simply need to log into your STP compliant software, check the income summaries and make your finalisation declaration.  This will then lodge the year end information to the ATO and send the information electronically to your employee.

Closely held employers (employees are directly related) have a deferred start date of 1 July 2021.  So, they don’t need to do anything just yet.  Although many closely held businesses are getting on board already.

If you need any assistance in finalising your STP system for the 2020 year are unsure about your STP obligations, please contact JHL Accounting.

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