3 crucial steps for employers to ensure employees can lodge their tax returns and the ATO receives accurate data.
As an employer, preparing for the end of the financial year involves finalising your Single Touch Payroll (STP) data and marking your employees as 'tax ready'. This crucial step ensures your employees can lodge their tax returns and the ATO receives accurate data. Below is your easy guide on how to do this, courtesy of our official software partner, Xero:
1. Review Your STP Data:
Ensure all payroll events have been filed correctly, employee details are accurate, and year-to-date amounts are correct. Address any discrepancies before moving to the next step.
2. Mark Employees as Tax Ready:
Navigate to Xero's 'Payroll' menu, select 'Employees', then choose 'End of Year Reports'. Review your STP finalisation reports and, if all is accurate, declare your data as 'Final'. Your employees will now be marked as 'tax ready' and can lodge their tax returns.
3. Notify Your Employees:
After finalising the STP data, inform your employees about the status update. This facilitates a transparent process and allows them to proceed with lodging their tax returns.
For more detailed instructions, Xero's help blog offers a step-by-step guide.
Remember, as an employer, you play a crucial role in making tax time smooth for your employees. Let's stride towards a successful end-of-financial year together!
We at Fync extend our comprehensive support to all businesses navigating through their STP finalisation and employee tax readiness tasks. Our dedicated team is ready to facilitate this process, ensuring accuracy, transparency, and compliance. We believe in easing your tax responsibilities while preserving your business efficiency and employee relationships. Through our seamless financial solutions and dedicated customer support, Fync remains steadfast in empowering businesses, enhancing your financial understanding, and championing your journey towards a successful end-of-financial-year completion. Together, let's navigate tax time with ease, efficiency, and assurance.
*Disclaimer: Please note that the information provided in this communication is for general informational purposes only and should not be construed as professional advice. It is not intended to substitute for personalised financial, legal, or tax advice. Please consult a qualified professional before making any decisions based on the information provided.