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EOFY Finalisation (STP Phase 1 - 2018) - Reckon Accounts

Applies to Australia only

With the implementation of the ATO's STP Phase 2, this article may no longer be relevant for your version. To see the latest information, please see the articles below:
- Pay Event - Reckon Help and Support Centre
- Pay Event Types - Reckon Help and Support Centre
- Overview of the STP Phase 2 for Reckon Accounts - Reckon Help and Support Centre
- Year-end finalisation (EOFY) in Reckon Accounts 2023 - Reckon Help and Support Centre

What is End-of-year finalisation?

Read more about EOFY from here.

 

Prior to the introduction of Single Touch Payroll (STP), employers would export their Empdupe file from their accounting software and upload it at ATO's Portal to finalise their payroll tasks. However, from 1st July 2019, STP was introduced, and it was made mandatory for employers with 20+ employees to lodge STP after each pay run, employers need to lodge their Final Pay of the year via STP to notify ATO.

  • Employers with 20 or more employees were required to start reporting from 1 July 2018.
  • Employers with 19 or fewer employees were required to start reporting from 1 July 2019 unless an exemption applied to them.
  • Some joined either from 1st July 2018 and later in the same financial year. Employers who have joined STP part way through the year, they might have terminated employees prior to joining. Hence, those terminated employees pays have not been reported via STP.
  • Some employers also have casual employees, where the employer might not know when would be the final pay of the employee for the financial year.

 

You need to finalise your employee's STP information through your STP-enabled solution by making a finalisation declaration.

This article will explain how to handle finalising the pays of the year for each of the above scenarios using different versions of Reckon Accounts to make your EOFY as smooth as possible.

 

For a better user experience, Reckon Accounts 2020 and later versions, the Pay Event types are placed under the new Pay Event drop-down menu. You can find the Finalise Year option over here as well.

Once you choose this option, all of your employees paid throughout the chosen financial year will show in the list. You can select all/specific employees to export their final Year-To-Date (YTD) data of their pays. You can also view the Total Gross and Total PAYG of the chosen Financial Year.

 

You will have to lodge your last pay of the financial year just like any other regular pay. Once you have lodged the last pay via Reckon GovConnect successfully, only then you will also use the Finalise Year option to export and mark the pays of all employees as Final for the chosen Financial Year (FY). As per strict instructions from ATO, users are requested to not use both Empdupe and STP to lodge same employee's data as it doubles up the pay details at ATO's end. If you have used STP for any employee, then it is recommended to use STP (Finalise year option) to lodge final pay details of all employees to ATO.



Employers with 20+ employees

Since 1st July 2018, STP is mandatory for employers with 20+ employees. All employers with 20+ employees must be using STP to report their pays. You will not be using Empdupe function to lodge your Payroll data.


Employers with 19 or less employees

Joined STP from 1st July of the Financial Year

If you joined STP from 1st July of the Financial Year and you have lodged EVERY employee's pay details via STP throughout the year, then you will be using STP to finalise your payroll. You will not be using Empdupe function to lodge your Payroll data.


Joined STP part way through the Financial Year

If you joined STP after 1st July of the Financial Year, but before 30th June, and you did not lodge EVERY employee's pay details via STP throughout the year, then  we recommend you to use STP to finalise your payroll. You will not be using Empdupe function to lodge your Payroll data.


Didn't join STP in the Financial Year

If you didn't join STP between 1st July and 30th June of the Financial Year, then you will be using the existing Empdupe functionality to export your payroll data and lodge it via ATO Business Portal.

 


Summary

  • When do I use Final Event?
    • If ALL employees (between 1st July and 30th June of the Financial Year) of your company are part of your last pay and you have lodged all terminated employees termination pay of the financial year through STP, you can tick this option when you lodge your last pay
  • When do I use Finalise Year?
    • If at least 1 employee (between 1st July and 30th June of the Financial Year) of your company was NOT part of your last pay or you terminated employee in the financial year but did not either join STP by then or did not lodge their Termination pay through STP, then lodge your last pay as a normal pay and use Finalise Year option to lodge your EOFY payroll data.

 


Resources

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