EOFY Staff Remuneration Checklist for SMEs in 2026

The end of the financial year is one of the most high-pressure periods for any small or medium-sized business. Between finalizing payroll, confirming superannuation contributions, and ensuring your records are ATO-ready, it is easy for something to slip through the cracks, and the consequences can be costly.

This checklist is designed to provide SME owners and managers with a clear, practical walkthrough of everything that needs to be completed at the end of the financial year and shortly after. By following these steps, you can stay compliant, minimize risk, and avoid unpleasant surprises.

Why EOFY Remuneration Compliance Matters More Than Ever

The ATO has been increasingly focused on payroll compliance in recent years. Single Touch Payroll (STP) Phase 2 has expanded the data employers are required to report, meaning discrepancies between what’s declared and what’s actually paid are easier than ever to detect.

For SMEs without a dedicated HR or finance team, the risk of errors is real, not from negligence, but simply from complexity. Getting your remuneration obligations right before the 30 June deadline protects both your business and your employees.

The EOFY Staff Remuneration Checklist

1. Reconcile Your Payroll Records

Before anything else, reconcile your payroll data for the full financial year.

• Cross-check gross wages, PAYG withholding, and allowances in your payroll software against your general ledger
• Confirm that all pay runs have been finalised and submitted via STP
• Identify and correct any duplicate entries or missed pay runs
• Ensure termination payments are correctly coded and reported

If your business relies on manual processes or spreadsheets, this is the stage where errors tend to surface. Businesses that use integrated payroll and bookkeeping services typically find reconciliation far less painful, as the data is already structured and consistent.

2. Confirm Superannuation Contributions Are Up to Date

This is one of the most commonly missed obligations at EOFY. Super contributions must be received by the fund, not just processed, by the relevant quarterly deadline.

Quarter	Period	Payment Due
Q3 2025–26	1 Jan – 31 Mar 2026	28 April 2026
Q4 2025–26	1 Apr – 30 Jun 2026	28 July 2026

Key actions:

• Confirm Q3 super has been received by employees’ funds (not just sent)
• Calculate Q4 super based on Ordinary Time Earnings (OTE) at the current SGC rate of 11.5%
• Check for any salary sacrifice arrangements that need to be reflected correctly
• Lodge a Superannuation Guarantee Charge (SGC) statement if any contributions were late

Note: Super contributions are only tax-deductible in the financial year they are received by the fund. If you want to claim the deduction for 2025–26, contributions must clear before 30 June.

3. Review Employee Classification and Award Rates

EOFY is a good time to audit whether your staff are classified correctly.

• Are all casual, part-time, and full-time employees correctly categorised?
• Have any Modern Award pay rate changes (effective 1 July 2025) been applied?
• Are contractors being treated as contractors for payroll purposes, or do any need to be reclassified as employees under the current rules?

Misclassification is an area that the ATO and Fair Work have both flagged as a compliance priority. Getting this right is part of sound accounting and bookkeeping practice, not just a box-ticking exercise.

4. Finalize STP Reporting

Under STP Phase 2, you are required to submit a finalisation declaration for each employee through your payroll software by 14 July 2026 (or 31 July if you have 19 or fewer employees and are using a registered agent).

Before submitting your finalisation:

• Ensure all pay events for the year have been submitted
• Check that reportable fringe benefits amounts (RFBA) are included if applicable
• Confirm reportable employer super contributions (RESC) are correctly recorded
• Review any closely held payees and report them by the extended deadline

5. Prepare Payment Summaries (If Required)

Most employers no longer need to issue individual Payment Summary Annual Reports; STP has replaced this for most situations. However, you may still need to issue income statements for:

• Employees who were not reported through STP (e.g., some closely held payees)
• Contractors to whom you paid voluntary withholding

Employees access their income statements directly through myGov, but make sure they know the information will be available there and when to expect it.

6. Check for Fringe Benefits Tax Obligations

If your business provides benefits such as company vehicles, expense reimbursements, or entertainment, your FBT year runs 1 April to 31 March, so the 2026 FBT return would already be lodged. However, EOFY is still a good time to:

• Review any ongoing arrangements that will carry into the new FBT year
• Ensure RFBA amounts are correctly included in STP finalisation

Quick EOFY Remuneration Checklist Summary

• Payroll reconciled against general ledger – Ensure all payroll figures align with the financial accounts.
• All STP pay events submitted and up to date – Verify that every pay run for the year has been reported to the ATO.
• Q3 super confirmed as received by funds – Confirm that the third-quarter superannuation payments have reached the employees’ accounts.
• Q4 super calculated and scheduled – Calculate the final quarter’s super obligations and set a payment date.
• Employee classifications reviewed – Check that all staff are categorized under the correct roles and levels.
• Award rate increases verified – Ensure any mandatory pay rate changes have been updated and applied.
• STP finalisation declaration submitted by deadline – Complete the final year-end reporting to the ATO.
• Income statements available for applicable employees – Ensure staff can access their year-to-date earnings via myGov.
• FBT obligations reviewed and RFBA amounts confirmed – Check Fringe Benefits Tax requirements and confirm Reportable Fringe Benefits Amounts.

Getting Professional Support Before 30 June

For many SMEs, EOFY remuneration compliance is manageable but time-consuming. If your payroll has grown in complexity, you’ve taken on new staff categories, or you’re simply not confident your records are ATO-ready, it’s worth engaging a professional before the deadline rather than after.

There are experienced providers offering dedicated payroll services in Australia that understand the specific obligations small businesses face, from SGC calculations to STP lodgements and everything in between.

FAQ

Q: When is the EOFY STP finalization deadline for 2026?

A: For most employers, the deadline is 14 July 2026. If you have 19 or fewer employees and use a registered tax agent, you may have until 31 July 2026. Check with your agent for your specific circumstances.

Q: What happens if I missed a super contribution deadline?

A: If super is paid late, you may be liable for the Superannuation Guarantee Charge (SGC), which includes the shortfall amount, interest, and an administration fee. You’ll need to lodge an SGC statement with the ATO. The SGC is not tax-deductible, unlike regular super contributions.