As part of Single Touch Payroll (STP), once all pays have been processed for the year and you expect no further adjustments, such as Fringe Benefits, as an employer you need to advise the ATO that you have finalised your STP batch submissions for the year. This is called Finalisation.
Up until this point, if an employee logs into MyGov, they will see the Income Statement has a status of "Not Tax Ready".
Once STP batches have been finalised then employee Income Statements become "Tax Ready". At this point the employee will be able to lodge their tax return.
To Finalise your submissions for the year:
Find the last batch for the relevant financial year.
Open the last batch by clicking on the batch.
Use the Download csv button to download the Income Statement report and reconcile to your payroll reports as required.
If you are finalising near the end of June, then you will see a EOY Finalisation toggle button, click this button - see the example screenshot below.
📌Note: If you do not see this button, then use the Options drop down and select Finalisation.
Click the Sign and submit finalised batch button to lodge the Finalisation with the ATO.
The status of employee Income Statements will update after the Finalisation is confirmed by the ATO and the ATO updates MyGov. There could be a delay of a day or so until MyGov updates.
The EOY Finalisation toggle and selection from Options button:
