So, what is PAYG payment summary terminology all about? It comes up constantly at tax time, especially once July rolls around. In short, a PAYG payment summary is a form that shows the income individuals were paid and the tax deducted across a financial year. For years, an employer or company issued one to its employees, the payees, so each person could prepare their income tax return.
What A PAYG Payment Summary Shows
It sets out the numbers the Australian Taxation Office needs: the salary or wages paid, the PAYG withholding deducted, any allowances, and the taxable component of your income. It may also note non taxable payments separately, since those are treated differently when calculating your taxable income. The form is the bridge between what your business or employer paid and what you report.
PAYG Payment Summaries Versus Income Statements
Then the system changed. Since Single Touch Payroll, most employers are no longer required to send an original form on paper. Instead, payroll software reports your pay to the ATO, and at year end your employer marks the data as completed and finalised. What used to be a payment summary is now usually an income statement. This trips up a lot of West Australians with more than one job, FIFO rosters, or a mix of wages and Centrelink, where several income statements must line up before you lodge.
Behind the scenes, employers once lodged a PAYG payment summary statement and a PAYG withholding annual report to tell the ATO what they paid and withheld. Today most of that flows automatically. Government payers are different: Centrelink, and even a school or other body, may still issue payment summaries for pensions, Family Tax Benefit (FTB), and Child Care Subsidy (CCS), and these apply to your return and must be included too.
How To Access Your Income Statement
For the current financial year and prior financial years, the simplest way to find this type of statement is through myGov linked to the ATO. Your employer must finalise it first, usually by mid-July, and a note appears in myGov once it is ready. Paper originals are rare now.
If the details look wrong, check with your employer before you lodge, since they prepare the figures. You can also request the information, or ask a registered tax agent like us to access and verify it, then lodge for you.
A Quick Example
A FIFO worker from Rockingham came to us last July, certain his employer had forgotten his payment summary. He had worked for two companies that year and assumed the paper forms were lost in the mail. We showed him both income statements sitting in myGov, finalised and ready, added his Centrelink summary, and lodged before he finished his coffee.
Frequently Asked Questions
These are the questions we are asked most. Anything else, just ask.
Do I Still Receive A PAYG Payment Summary?
Usually not on paper. Most employers report through Single Touch Payroll, so you receive an income statement in myGov. Some smaller payers may still issue one, so it pays to check both.
Where Do I Find My Payment Summary?
Log in to myGov, select the ATO service, and look under income statements. The amounts must show as finalised before you lodge. If you cannot access myGov, we can pull the information for you.
What If The Amounts Look Wrong?
Contact your employer, since they report the figures. Higher or lower amounts than expected are worth querying before you lodge, and we are glad to help.
Need Help With Your Tax Return?
Payment summaries and income statements confuse plenty of people. They should not. Whether you are missing a form, unsure which amounts are taxable, or simply want it handled, our Perth team makes lodging your tax return quick and accurate. Book a consultation today, and we will sort it.
