Simplify Your End-of-Financial-Year Bookkeeping: Super Guarantee, Single Touch Payroll, and Payment Summaries

by | 9 Jun 2023

As the end of the Financial Year approaches, it’s essential to prepare your bookkeeping processes for a smooth transition. From payroll management to compliance with regulations, adequate preparation can make a significant difference. We will cover important aspects such as the Super Guarantee rate increase, the significance of Single Touch Payroll (STP), and the importance of timely Income Statements. Let’s dive in!

 

Super Guarantee Rate Increase:

Firstly, let’s address the upcoming Super Guarantee rate increase. Starting from 1 July, the Super Guarantee rate will rise from 10.5% to 11%. It is crucial for employers to stay informed about this change and adjust their bookkeeping processes accordingly. Review your payroll systems and ensure they can accommodate the increased rate. Failing to meet superannuation obligations can result in penalties and additional costs, so it’s important to stay compliant and up to date.

 

The Power of Single Touch Payroll (STP):

Next, let’s discuss Single Touch Payroll (STP), a reporting framework introduced by the Australian Taxation Office (ATO) to simplify payroll reporting. With STP, employers report their employees’ tax and superannuation information directly to the ATO each time payroll is processed. To ensure a seamless experience, make sure your business is registered for STP and that your bookkeeping systems can handle the reporting requirements. This will help you avoid penalties and streamline the end-of-year reporting process.

 

Timely Income Statements for Happy Employees:

Now, let’s emphasise the importance of providing timely Income Statements (formerly payment summaries) to your employees. Income Statements summarise your employees’ income, tax withheld, and superannuation contributions for the Financial Year. As per the new process, Income Statements are electronically sent to employees’ myGov accounts as ‘Tax Ready’, enabling your Employees’ to be able to lodge their Income Tax Returns. To ensure accuracy, review and reconcile all payroll data, including salaries, allowances, and bonuses. Double-check tax and super calculations. Utilise accounting software or payroll systems to send the data electronically to the ATO before the 14th of July. By doing so, you ensure compliance, and your employees can complete their tax returns promptly.

 

Wrap-Up:

Preparing for the end of the Financial Year doesn’t have to be daunting. By following these tips, you can simplify your bookkeeping processes and ensure a smooth transition. Stay informed about the Super Guarantee rate increase, embrace Single Touch Payroll for streamlined reporting, and provide timely Income Statements to your employees. If you find the process overwhelming, consider seeking professional bookkeeping services to navigate the complexities effectively. With proper preparation, you can optimize your financial management and successfully close out the financial year. Here’s to a successful end-of-financial-year season!