What Is a PAYG Payment Summary? Income Statements and STP Explained
An employee may ask for a PAYG payment summary or group certificate at the end of the financial year. Most employees whose income is reported through Single Touch Payroll now receive an income statement instead.
The income statement contains the payment and withholding information previously shown on a payment summary. Employees can usually access it through ATO online services in myGov. Employers must first review their payroll records and complete STP finalisation so the information becomes tax ready.
Traditional summaries still apply in some situations where payments were not reported and finalised through STP. This guide explains the different records, where to find them and what employees and employers should do when information is missing or incorrect.
What Is a PAYG Payment Summary?
A PAYG payment summary is an annual record of payments made to a worker and the PAYG withholding deducted from those payments. It was commonly called a group certificate. Most employees whose payments are reported through Single Touch Payroll now receive an income statement instead.
A traditional summary may show salary and wages, allowances, lump sums and other reportable amounts for the financial year. The term “PAYG summary” is often used as shorthand, but it is different from the PAYG amount shown on each payslip.
A payslip covers an individual pay period. A payment summary or income statement provides cumulative information used for annual tax reporting.
Are PAYG Payment Summaries Still Used?
PAYG payment summaries are still used, but they are no longer the standard annual record for most employees. Where an employer reports and finalises payments through STP, the employee generally receives an income statement instead.
STP sends payroll information to the Australian Taxation Office throughout the year. At year end, the employer checks the figures and completes end-of-year finalisation through STP. Employers generally need to finalise by 14 July, although limited exceptions may apply.
Employers do not need to issue a separate summary for amounts reported and finalised through STP. They may still need to provide one and lodge an annual report for payments outside STP.
PAYG Payment Summary vs Income Statement vs Payslip
A PAYG summary and an income statement serve a similar annual tax-reporting purpose, but they are not technically the same record. An income statement is created through STP, while a traditional summary applies to certain payments reported outside STP.
A payslip is different from both because it records one pay period rather than final annual employment information.
| Record | Purpose | Period Covered | How It Is Provided | Current Use |
| Payslip | Shows earnings, deductions and PAYG withholding for a pay run | One pay period | Provided by the employer, often through payroll software | Issued throughout employment |
| PAYG payment summary | Records payments and withholding for annual tax reporting | Usually the financial year or employment period | Provided by the payer or employer | Used for certain payments outside STP |
| STP income statement | Records payroll information reported through STP | Builds during the year and becomes final after employer finalisation | Accessed through myGov, the ATO app or a registered tax agent | Usual annual record for most STP-reported employees |
PAYG on a payslip is the tax withheld from that particular payment. A fortnightly payslip may show $450 withheld, while the income statement shows the cumulative amount reported for the financial year.
A payslip can help you check whether annual figures appear reasonable, but it does not replace a finalised income statement or a required traditional summary.
What Information Appears on a PAYG Summary or Income Statement?
A payment summary or income statement shows the employment income and tax information reported for the financial year. The exact fields depend on the payment type and reporting method.
- Employee details, including the employee’s name and tax file number.
- Gross payments, such as salary, wages, commissions and bonuses before withholding.
- PAYG withholding deducted from reportable payments.
- Separately reported allowances, where applicable.
- Reportable fringe benefits, where applicable.
- Reportable employer super contributions, such as some salary-sacrifice contributions. Ordinary compulsory super guarantee contributions are not reported as RESC.
- Employment termination payments, where applicable.
Not every record contains every field. Employees can compare gross payments and withholding with year-to-date totals on their final payslips. Any unexplained difference should be checked with the employer before lodging a tax return.
PAYG Payment Summary Example
The fictional example below shows the type of information that may appear on a PAYG payment summary. It does not reproduce an official ATO form and should not be used to calculate a tax liability or refund.
| Field | Illustrative Details |
| Employee | Alex Taylor |
| Financial year | 1 July to 30 June |
| Gross payments | $68,000 |
| PAYG withheld | $13,400 |
| Allowance | $1,200 tool allowance |
| Reportable fringe benefits | Nil |
| Reportable employer super contributions | Nil |
Gross payments represent Alex’s reportable salary and wages before tax was withheld. The allowance appears separately because some payment categories must be reported independently.
The layout may differ between a legacy summary, payroll software and an income statement viewed in myGov. The employee should still be able to identify the payer, reporting period, gross payments, withholding and any applicable reportable amounts.
How Do I Find My PAYG Payment Summary?
Most employees whose payments are reported through STP will not receive a separate PAYG payment summary. They can usually find the equivalent income statement through myGov.
To access your income statement through myGov:
- Sign in to your myGov account.
- Open the linked Australian Taxation Office service.
- Select Employment.
- Select Income statements.
- Choose the relevant financial year.
You may also be able to view the information through the ATO app. A registered tax agent can access the details when authorised to act for you.
If a payment was not reported through STP, it may not appear as an income statement. Contact the employer or payer and ask whether a traditional summary is required.
What Does “Tax Ready” Mean?
“Tax ready” means the employer has finalised the income information reported through STP for the financial year. The employee can then use that information to prepare a tax return.
Before finalisation, the statement may show as “Not tax ready”. The figures can still change if the employer needs to report another pay event, correct payroll information or complete the finalisation declaration.
If the statement remains not tax ready after the normal finalisation period, contact the employer. Tax-ready status confirms finalisation, but it does not guarantee every amount is correct. Compare the statement with final payslips and raise unexplained differences.
Do You Need a PAYG Payment Summary for Your Tax Return?
You usually do not need a separate PAYG payment summary if your STP income statement is marked tax ready. Once finalised, the information is generally available to pre-fill into myTax and to your registered tax agent.
Check that income from every employer or payer is accounted for. A person who worked for two employers should confirm that both income statements are tax ready and retain any traditional summary received for income outside STP.
When Is a Traditional PAYG Payment Summary Still Required?
A traditional summary may still be required when a payment has not been reported and finalised through STP. Employers should check the reporting method used for each payment rather than assume STP covers every annual obligation.
| Reporting Position | Usual Annual Record |
| Payment reported and finalised through STP | The employee generally receives an income statement through ATO online services |
| Payment not reported and finalised through STP | The payer may need to provide a traditional summary and include it in a PAYG withholding annual report |
Where a traditional summary is required, it is generally provided to the payee by 14 July. The related annual report is generally due to the ATO by 14 August. These dates do not replace STP finalisation requirements for payments reported through STP.
The ATO’s guidance on PAYG withholding annual reporting explains obligations for payments outside STP.
What Employers Need to Do Before STP Finalisation
STP finalisation should follow a review of the business’s payroll information. Clicking “finalise” confirms the reported information is complete. It does not reconcile records or correct existing errors.
Reconcile Payroll Records
Compare payroll summaries and employee year-to-date figures with amounts reported through STP. Check wage and withholding totals against relevant general ledger accounts and activity statements. Investigate duplicated, missing or one-sided adjustments before finalising.
Check Employee And Payment Details
Review names, tax file numbers, employment dates, status, payment categories and final payments for employees who left during the year. Duplicate employee records or incorrect category mapping can affect the income statement.
Review PAYG Withholding And Reportable Amounts
Check gross wages, PAYG withholding, allowances, deductions and other reportable amounts. Review employment termination payments, reportable fringe benefits and reportable employer super contributions where applicable.
Correct Errors Before Finalising
Correct discrepancies in the payroll records wherever possible. Updating only the general ledger will not correct information already reported through STP. An error discovered after finalisation may require an update event.
Complete The STP Finalisation Declaration
Once payroll information is reconciled and corrected, the employer can complete the finalisation declaration through its payroll software. The standard deadline is 14 July, although limited exceptions may apply. Finalised information then becomes tax ready for employees.
PAYG Summaries and STP Finalisation in Xero and MYOB
Business owners may still search for a “Xero PAYG summary” or “MYOB payment summary” at year end. For STP-reported employees, the current process generally involves reviewing payroll data and completing STP finalisation rather than generating traditional summaries.
Xero
Xero users should review employee details, payroll categories and year-to-date figures before finalising. Any discrepancy between payroll reports, accounting records and STP data should be investigated.
Xero provides current Single Touch Payroll guidance for businesses completing the process.
MYOB
MYOB users should also compare payroll records with the year-to-date amounts reported through STP. The former Payment Summary Assistant, EMPDUPE file and Business Portal workflow should not be treated as the standard process for STP-reported employees.
MYOB’s end-of-year finalisation guidance explains the current review and finalisation process.
What If a PAYG Summary or Income Statement Is Wrong?
An employee should contact the employer or payer if the annual record contains missing, duplicated or incorrect information. The employer should check the payroll records and correct the information through the reporting method originally used.
Employees should compare the employer name, gross payments, PAYG withholding and reportable amounts with their final payslips. Tax-ready status confirms finalisation, but a payroll error may still need correction.
For information reported through STP, the employer can generally correct year-to-date figures through payroll software. This may require an update event. For payments outside STP, the employer may need to issue an amended summary and lodge an amended annual report.
Employees should allow time for corrections to appear in myGov and review the updated information before lodging or amending a tax return. If a return has already been lodged, the guide to ATO tax return statuses and amendments explains what the processing updates mean and when an amendment may be appropriate.
Frequently Asked Questions
Get Your Payroll Reporting Right Before Finalisation
Most employees now access a tax-ready income statement rather than receiving a separate PAYG payment summary. Employers need to reconcile payroll records, correct errors and complete STP finalisation using accurate year-to-date information.
Professional support may be useful where payroll and accounting totals do not reconcile, an employee’s statement is missing or incorrect, payment categories are uncertain, or previously finalised information needs correction.
Grow Advisory Group provides payroll compliance support for businesses that need help reviewing payroll records, resolving discrepancies and meeting their reporting obligations. Advice should be based on the business’s payroll system, payment types and circumstances.