The HR/IR Solutions Guide for Small and Medium Businesses in Wollongong: Group Certificates and Payment Summaries
In previous years, at the end of each financial year an employer would need to provide their employees with a ‘group certificate’. This certificate showed an employee’s year-to-date salary and wage, the tax withheld and the superannuation which had been paid. This is now called an ‘Income Statement’.
The Single Touch Payroll is a Government initiative which reduces the reporting burden placed on your business. When you pay your employees with STP-enabled software, salaries/wages, PAYG withholding and superannuation will be automatically sent through to the ATO, meaning you do not need to further report this information to the ATO. All employers are required to use the STP.
An employee’s Income Statement will be available by 14 July if your business has 20+ employees or by 31 July if your business has 19 or fewer employees. Your employees must have their ATO account linked to their myGov account.
The information provided in the Income Statement is used in the employees annual individual tax return. The information will automatically appear on your employee’s tax return.
If you have any further questions relating to payroll, payment summaries, or other HR-related issues, talk to John at HR/IR.
