Do you employ staff? Here is what you need to do for EOY..


Do you employ staff? Are you aware of your End of Financial Year reporting obligations?

As an employer you are required to provide payment summaries to your employees by July 14, 2016

What is a Payment Summary?

Under pay as you go (PAYG) withholding, you must give each of your employees, workers and other payees a payment summary showing the payments you have made to them and the amounts you withheld from those payments during a financial year

Payment Summaries for Workers

Generally, you must give each of your workers a payment summary by the 14 of July each year even if the withheld amount is nil.

If you have paid an Employment Termination Payment (ETP) to a worker you must give them an ETP payment summary within 14 days of making the payment.

If you lodge your PAYG withholding reports online you can give your workers their payment summaries electronically. The payment summaries must be in a format acceptable to the ATO.

Otherwise you will need to use the triplicate forms that the ATO provides, giving one copy to each worker, keeping a copy for your records and sending the ATO original copy to the ATO as part of your annual reporting.

What is a PAYG Payment Summary Annual Report

At the end of each financial year you must lodge a PAYG withholding annual report with the ATO.

The report must include:

  • all payments you made to employees, workers or businesses during the financial year

  • the amounts you withheld from those payments.

Lodging your PAYG withholding payment summary annual report as soon as you provide payment summaries to your employees makes it easier for your employees to lodge their tax returns.

PAYG Payment Summary Annual Report must be received by the ATO by the very latest August 14, 2016

Tax Rate Updates

As at July 1,2016 you will need to use the latest tax rates to calculate any withholding from your staff members pay. To check on any updates to these tax rates go to www.ato.gov.au/tables, these will be available from mid-June

If you use Accounting software to process your pays (MYOB, Reckon/QuickBooks, Xero) contact your software provider for any payroll updates

If you require any further information on Annual Employer Reporting please call our office on 07 5502 6673

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