Businesses have been given extra time to submit their Single Touch Payroll finalisation declaration this year as the ATO acknowledges the continuing impacts of COVID-19.
Employers with arm’s length employees have been allowed an extension to make their end-of-year STP finalisation declaration by 31st July 2021 if they are unable finalise by the usual 14th July due date.
This follows the ongoing effects of COVID-19 on the Australian community. The ATO urges employers who are still able to complete the declaration at an earlier date to do so.
The Tax Office also advised that it’s important for businesses finalise their employees’ data by 14 July if possible, and let their employees know when this has been done so they can lodge their income tax returns.
This is a considerate action from the ATO to alleviate the immense expectations upon employers in what has been an adversely impacted year to provide an extension in light of lockdowns occurring across the country.
The ATO reported that the significant anxiety on businesses as well as bookkeepers and accountants has been incredibly high for this end of year in particular.
Advisers assisting businesses through understanding and coping with the different stages of ‘COVID lockdown’ has added additional stress to a time of year that is already full of compliance deadlines.
The extension of this deadline will help to make sure that the end-of-year income statements for individuals are prepared accurately.
The finalisation due date for businesses with a combination of closely held payees and arm’s length employees remains at 30th September for closely held payees. Small businesses who only have closely held payees will need to ensure they complete the finalisation by the payee’s income tax return due date.
If you need any additional information on this matter, please contact our office.