EOFY for your employees¶

At the end of the financial year, your staff need a summary of what they earned and the tax that was taken out, so they can do their own tax return. These days they get this online through myGov, not as a paper form from you.

A little explanation from you goes a long way. Many employees, especially those new to Australia or to the workforce, still expect a paper "payment summary" or "group certificate" in the post. Letting them know what to expect saves confusion.

Why this matters¶

If an employee lodges their tax return too early, or goes looking for a paper form that never arrives, they can end up frustrated or having to fix their return later. A short heads-up from you — where to find their statement, and when it is ready — helps your team get their tax done smoothly.

What you will learn¶

• How employees now get their income statement
• Why they should wait for Tax ready before lodging
• What to tell staff, and who they should ask about a problem

Understanding the concept¶

The ATO explains that when you report your payroll through Single Touch Payroll, employees no longer receive a paper payment summary from you. Instead they get an income statement, which is the online equivalent, available through myGov. (Some people still call the old form a "payment summary" or "group certificate" — the income statement is what replaces it.)

There is one important step for employees to understand: the income statement shows a status. It only becomes Tax ready once you, the employer, have finalised the year's payroll. The ATO advises employees to wait until their income statement says Tax ready before they prepare and lodge their tax return. If they lodge before it is ready, the final figures may differ and they could have to amend their return.

So the message to your staff is simple:

• Find your income statement in myGov (or the ATO app).
• Wait until it says Tax ready before you lodge.
• If something looks wrong, ask.

Who they should ask. If the amounts look wrong, an employee can raise it with you first, since payroll comes from your records. For questions about their own tax return or myGov account, they can contact the ATO, or speak to a registered tax agent.

Your role. You do not lodge tax returns for your employees — that is theirs to do. Your part is to finalise the year's payroll so their income statement turns Tax ready, and to let your team know where to find it and to wait for that status.

Example¶

Lin employs four people at her bakery. In early July she sends a short message to the team: your income statement is in myGov, not a paper form in the post; please wait until it shows "Tax ready" before you lodge your tax return; and if the numbers look wrong, come and see me. One staff member checks and sees the status is still not ready, so they wait a few days until it updates. Because Lin explained it up front, nobody goes looking for a group certificate and nobody lodges too early.

Common mistakes¶

• Employees waiting for a paper payment summary that no longer comes.
• Lodging a tax return before the income statement is Tax ready, then having to amend it.
• The employer forgetting to tell staff where to find their statement or when it is ready.
• Assuming the employer lodges the employee's tax return — the employee does that themselves.

How this works in myaccountant¶

Key points¶

• Staff get an income statement through myGov, not a paper payment summary.
• The income statement is the online replacement for the old payment summary.
• Employees should wait until it says Tax ready before lodging their tax return.
• It turns Tax ready once you finalise the year's payroll.
• If amounts look wrong, staff can ask you first; for their tax return they can ask the ATO or a registered tax agent.
• Your role is to finalise on time and tell staff what to expect.

Learn next¶

• Income statements explained
• What is STP finalisation?
• The finalisation due date

General information only — not tax, super or financial advice.