How to Video (60 secs)
End of Financial Year (EOFY) Final Pay Run processing under Single Touch Payroll (STP) is now simple and fast for employers and employees, requiring no paper forms or file uploads.
At the EOFY, employers gave each employee their Payment Summary (now known as Income Statements) and then lodged their business Payment Summary Annual Report (PSAR) with the ATO.
This was done either manually or with payroll software which created a special file known as an EMPDupe that was uploaded to your Tax Business Portal.
- At the EOFY, you submit a final pay run to the ATO using the BiYP app (your STP software). This declares you have provided all required information for the financial year through your STP reporting
- Employees then access their Income Statement within their myGov ATO Account instead of you providing them with a Payment Summary (either physically or PDF)
What you need to know
- At least one pay run needs to be submitted via the BiYP app before you can finalise your EOFY STP report
- The process is the same as Add New Pay Run but with one additional step: switching on the Final Pay Run button
- The Final Pay Run reports pay details for all employees within the financial year for:
- More than one Final Pay Run to the ATO can be submitted should you make a mistake. A subsequent Final Pay Run will override a previous one
- Where an employee's pay requires correction after submitting the final pay run to the ATO, and the correction is not related to details within the Final Pay Run, contact BiYP Support to make the correction
- For the 2019-20 FY, employers with 19 or less employees have until 31 July 2020 to finalise their STP report with the ATO
Key reasons to process the Final Pay Run
- The Final Pay Run submits the finalisation indicator for each employee which the ATO uses to pre-fill the employee's income tax return and display the information as 'tax ready' in myGov
- You meet the ATO requirement to make a STP Finalisation Declaration for the financial year for your registered business
How to Process EOFY Final Pay Run (Screenshots)
The steps below show you to process a Final Pay Run
Tap the Pay Runs icon in the dock or Payroll
Tap Add New Pay Run
- If the details shown at Employees Included are correct then go to Step 4
- If the employee pay details need reviewing or editing, tap the Employees Included amount arrow (>) and follow the normal pay run process for checking pay run details: see article Processing Pay Runs
- If you have already processed your last pay run for the year but forgot to mark it as a Final Pay Run, then you will need to edit employee pay details to show zero amounts before going to Step 4
Tap Final Pay Run button to turn on final pay run for the financial year which will pop up an alert message.
This alert lets you know that the Final Pay Run has been turned on and will include the following employees:
Tap OK to return to the screen and proceed. You will notice the screen now displays Process Final Pay Run instead of Process Pay Run
- Tap Yes to Process Final Pay Run
- Tap No if you do not wish to proceed. If you do not proceed, the Final Pay Run will not be processed
Tap Now to email payslips or Later to defer emailing. You don't need to email payslips to process your Final Pay Run
Tap Now to Submit STP File
Enter Submitter Name
Tap Submit to ATO to submit the file to the ATO
This pay run includes the Finalisation Declaration to the ATO because the Final Pay Run button was turned on.
The Processed Pay Run for the EOFY displays the STP File as Pending initially.
- As the STP File submitted was a Final Pay Run it may take up to 72 hours before the status updates to Accepted
- When the status changes to Accepted, the Final Pay Run (EOFY) is complete and the Finalisation Declaration is accepted by the ATO.
- If status of the file is Rejected, fix the errors as per normal pay run processing and resubmit Final Pay Run: see article How to Resolve Rejected Files
- Your employees' Income Statement will now display the information as 'tax ready' in their myGov account