Finalisation Events

Overview

Finalisation Events are a declaration indicating you have completed all pays for your payee(s) in the financial year being reported.

PayGlobal provides the ability to create Finalisation Events for:

• Current and past tax years
• All or some payers of a given tax year
• All or some payees of payer for a given tax year

When you submit a Finalisation Event, the ATO uses this data to pre-fill the employee(s) tax returns. Employees will be able to view this data on an Income Statement in their MyGov account.

Note: If company has submitted a Finalisation Event and then subsequently opens another pay for that reported year, a warning message will be produced in the Close Pay audit log indicating that re-finalisation is necessary.

The Finalisations tab in the STP Manager Tool is the easiest place from which to create new Finalisation Events.

The Payer EOFY Summary tab is best used for viewing the Finalisation status of each tax year/payer and completing any outstanding Finalisation actions.

Finalisation Event Scenarios

A finalisation event can be submitted for the following scenarios:

1. EOFY processes - this one is compulsory

   The due date for submitting these types of Finalisations is 14 July

2. Employee's who have ceased employment

   This scenario is optional. It is most commonly done for employees leaving Australia who wish to complete their tax return obligations whilst still in the country.

3. Employer has ceased trading
4. Amendments to a previous tax year

   You can amend finalised information reported through STP up to 5 years after the end of financial year.

   For example, if you needed to correct YTD amounts for the 2020/21 tax year, the ATO will accept replacement Finalisation Events until 30 June 2026.

   In this scenario, the ATO prefer that you send them an Update Event first signal the reopening of tax year. And only once you are fully satisfied no further changes need to be made to send them a new Finalisation Event.

What's the difference between a Payroll Event and Finalisation Event?

Technically, a Finalisation event is just another type of Update event with the key differences being that all employee(s) included in the payload are marked as finalised.

Other differences:

• Finalisation events created via the STP Manager tool - Payer EOFY Summary tab, includes all employees that were paid in the year being reported irrespective of whether they are still employed or not.
• Finalisation Events can only be submitted manually.
• Payer Period Totals (i.e. Period Total Gross PAYGW) are not populated.
• Submission ID has format of: PeriodYTDCode-PayerABN-PayerBranch-DateTimeStamp
• Pay/Update Date = Date user submits the event

How do I check if I am ready to submit a finalisation event?

See Single Touch Payroll Manager Tool - Payer EOFY Summary tab

And Single Touch Payroll Manager Tool - Finalisations tab

Fixing a partially rejected Finalisation Event

When a Finalisation Event is returned as “Successful (with errors)”; it is recommended that you submit a new Finalisation Event after the corrections have been made elsewhere, i.e. manual pay for monetary corrections or editing of the employee record to correct employee non-monetary error.

This process may need to be repeated until a finalisation event for the specific payer/year is returned as “Successful”.

Topic: 44517