EOFY Processing with Single Touch Payroll 2021
It's time to process your EOFY Payroll using Single Touch Payroll (STP).
Employees now access their Income Statements (previously known as Payment Summary or Group Certificate) through their personal MyGov account. This happens after you have completed your Single Touch Payroll processing.
To finalise your Single Touch Payroll in Xero you need to complete your End of year Employer Reporting. There are two ways you can do this:
The cost to prepare Employer Reporting will be as follows:
- STP Finalisation - $110 + $22 per employee
Annual Workers Compensation – Declaration of Rateable Remuneration
- $88 if we are completing STP Finalisation
- $198 if we are not completing STP Finalisation
- Payroll Tax Annual Reconciliation - $275 per state reconciliation
If you choose this option, you do not need to read this newsletter any further.
2. Complete the Employer Reporting yourself using the instructions below:
Completing the Employer Reporting
Step 1 - Complete the Instructions on the attached Xero Payroll Checklist
Step 2 – Workers Compensation Annual Declaration of Rateable Remuneration
At the end of each financial year, employers are required to declare their total rateable remuneration to their Workers Compensation insurer and an estimation of the following year’s remuneration. If you employ staff in various states, you may be required to hold a workers compensation policy for each state. Please let us know if you would like assistance with this.
If you are registered for Workers Compensation, your insurer will issue a Tax Invoice shortly after the end of the financial year. This tax invoice will provide details on how to access your online account if you haven’t done so already. By logging onto your online account, you can make the declaration online.
If you only employ staff in Victoria, here is a link to assist you in calculating your remuneration: Remuneration inclusions and exclusions
Or, if you would like further information about Workers Compensation Insurance in Victoria, click on this link: More Information about Victorian Workers Compensation Insurance
Step 3 – Payroll Tax Annual Reconciliation (if applicable)
Payroll tax is a state government imposed tax with varying thresholds and rates for each state. If you employ staff in multiple states and you need advice on your payroll tax status, please contact us. If you only employ staff in Victoria and your total wages plus superannuation exceeds $650,000, then you will be required to register for Payroll Tax.
At the end of each financial year, if you are registered for Payroll Tax, you are required to submit an Annual Reconciliation.
We know it has been another year of challenges and EOFY can be a particularly hectic time so if these steps seem too onerous or time consuming, please remember, we have a team at the ready to process your EOFY Employer Reporting. Just click the button below.
Your Suntax Team