Review Australian STP records before declaring the year final

Before an Australian employer makes its Single Touch Payroll finalisation declaration, check the employer identity, financial year and employee population in the submission. A declaration sent after June can accidentally use the new financial year. Compare the selected year with the payroll report being approved, rather than relying on the software's current-date default.

The ATO requires finalisation for employees paid and reported through STP during that financial year, including people who left or worked only part of it. Reconcile the list to employment history and completed pay runs. Employees missing from the final active payroll list still need a reporting decision.

For each employee, compare the year-to-date amounts prepared for finalisation with the reviewed payroll register. Inspect off-cycle payments, reversals and corrections, then explain the bridge to the general ledger. A ledger total can reconcile while one employee's reported income is overstated and another's is understated.

A midyear software migration needs its own identifier review. The ATO warns that transferring year-to-date amounts without the appropriate treatment of the old payroll record or previous business management software identifier can overstate an employee's income. Retain the migration method confirmed by the payroll provider and the evidence that the reporting records follow it.

In a hypothetical migration, AUD32,000 earned before the switch appears in the old software and is also imported into the new system. If the employee earns a further AUD18,000, the correct year total is AUD50,000. Review the transmitted records so that the opening AUD32,000 is not presented as a second income amount.

Inspect how the payroll system maps wages, allowances, deductions and relevant reportable items into STP. Have the payroll specialist confirm the treatment of unusual payments and benefits. Two records with the same total can carry different information for the employee's return if their categories differ.

Use an exception list that identifies the employee record, affected amount, proposed correction and person responsible. Keep personal details within the authorized payroll workspace. Where a correction changes a pay run, verify its effect on both the employee's year-to-date record and the employer's accounting reconciliation.

Confirm the applicable finalisation timetable for the employer and payee categories, including any approved deferral. Do not apply the ordinary employee deadline to closely held payees without checking the relevant rules. Tell affected employees when unresolved discrepancies delay their finalised information.

Save the approved employee totals, financial year, declaration reference and submission response. Finalised STP information becomes the employee's tax-ready income statement after year end. An accounting sign-off and a successful reporting submission are separate pieces of evidence.

The ATO describes different handling when an employee is paid after an earlier finalisation, depending on whether the payment is isolated or further payments are expected. Have the payroll owner follow that procedure and preserve the changed finalisation status. For corrections to an already finalised year, retain both versions, confirm the reporting update and notify the affected employee of the corrected information.