Finalisation is the process of marking an individual as having their income finalised for the financial year in question. i.e. You are stating that the individual will not earn any more income in that financial year. This gets transferred to an employee's MyGov ATO portal Income Statement and flags the statement as Tax Ready so they can do their tax return.
However, you can enter in adjustment transactions for a finalised employee, and this will be included in the YTD figures in an updated STP batch for that employee and included in the BAS figures for the Payroll Company.
To finalise an employee
In a Single Touch Payroll batch, go to the Options button of the most recent batch.
Select Finalisation. The Finalisation screen will appear.
The options in this screen are:
Select Terminated Employees to finalise (Select the individual from the drop-down field and Add for individuals or Add All for all terminated employees).
Individual Employees (Select the individual from the drop-down field and Add).
Finalise All to finalise all employees in the batch.
The finalised employees will show in the Finalised Employees section at the bottom of the screen. If you need to remove an employee from finalisation, click the X next to their name.
Click OK to complete the finalisation process.
Sign and Submit the batch as normal.
Finalisation Switch at end of year.
You will see the Finalisation Switch on STP batches between mid-June and the end of July at end of each financial year. You can use this option to quickly finalise all employees and sign and submit the final batch at end of year.
Finalisation Flag in the Employee Masterfile
After an employee has been selected as finalised, this will then set a flag in the Employee Masterfile in Attaché Payroll Desktop as per the screen shot below.
