June is here and now is the time for all employers to start preparing for the end of financial year.
Upcoming Important Changes:
- STP finalisation (former group certificates/payments summaries) needs to be lodge with ATO
- You need to make a finalisation declaration by 14 July each year. You can find more information here
- If you do not finalise by this date, you should do this as soon as possible to ensure your employees can access their information to complete their income tax return.
- Instructions on how to lodge STP finalisation Xero MYOB
- Superannuation will increase from 10% to 10.5% as of 1 July 2022
- Superannuation threshold currently $450 per month (or $350 for hospitality) will be abolished meaning staff earn superannuation from the first cent they earn
- From 1 July 2022, you must pay super on payments you make to an employee aged under 18 years if they work for you more than 30 hours in a week, regardless of how much you pay them
- Single Touch payroll 2 is coming into effect – more information to come
- Xero and MYOB have a deferral on the start date of the STP Phase 2.
- This means that all customers reporting STP using Xero or MYOB Payroll have until 31 December 2022 to report their first STP Phase 2 pay run, instead of the 1 January 2022 ATO deadline.
Things you may need to do in preparation of end of financial year:
- Reconcile your wages against payroll report and BAS/IAS lodged to make sure that no adjustments are needed before STP finalisation is lodged.
- Reminder to check your Fairwork award to ensure staff are being paid the correct rates from 01 July 2022.
- Make sure you make payment for all superannuation contributions before 21st June to be able to claim the full deduction
- Update Workcover estimates for the new financial year
If you need help with any of the above, do not hesitate and contact our Bookkeeping team.
Author – Luisa Oliveira
*Correct as of 21 June 2022
*Disclaimer – this article has been produced by Kreston Stanley Williamson as a service to its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas contained in this article, it is imperative you seek specific advice relating to your particular circumstances. Liability limited by a scheme approved under professional standards legislation.