If you are a business in the building and construction industries, you may be wondering how to generate a Taxable Payments Annual Report (TPAR) – and when is the due date?
Here we look at what the 1 Australian Tax Office (ATO) requires and how to 2 The steps to set up and generate a Taxable Payments Annual Report from Reckon/Quickbooks software.
1. ATO Requirements
From the ATO website latest page 19 June 2015 –
Taxable payments reporting – building and construction industry
In March 2015 we updated:
When to report – The due date for lodging the Taxable payments annual report is by 28 August each year.
Businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year.
You need to report these payments to us on the Taxable payments annual report.
To make it easier to complete the annual report, you may need to check the way you currently record your contractor payment information.
Taxable payments reporting for businesses in the building and construction industry aims to improve compliance with tax obligations by those contractors who are currently not doing the right thing.
The information reported about payments made to contractors is used in our data matching program to detect contractors who have not:
- Lodged tax returns, or
- Included all their income on tax returns that have been lodged.
2. Reckon/Quickbooks – The steps to set up and generate the report are –
1 Enable the Taxable Payment Reporting option in the preference to be able to open the report.
- Go to the Edit menu, choose Preferences.
- Choose the Tax item and go to the Company Preferences tab.
- In the Taxable Payment Report section, click to select the Enable the Taxable Payment Reporting option.
- Click OK.
2 Enable a supplier (sub-contractor) to become reportable on the Taxable Payment report
- Go to the Suppliers menu and choose Supplier Centre.
- On the Suppliers tab, double click the supplier’s name to open the supplier’s profile.
- Click to select the “Include in Taxable Payments electronic report” option.
- Click OK.
3. How do I create this report to have what I need to write on the ATO form?
- Go to the Suppliers menu, click Tax Activities, click Process Taxable Payments. The Process Taxable Payments annual report window opens.
- Click the Tax Year drop-down to select the tax year you are reporting on.
- If applicable, click the Withholding Liability Account drop-down to select the account you use to track withholding tax.
- Click the (tick) column to select the selected suppliers that you want to appear in the selected tax year’s report.
- Click the supplier to view the transactions for each supplier that are included in the report. The Supplier Taxable Payments Details – <supplier name> window opens.
- You can review each transaction and click to deselect if you don’t want it included.
- Click OK.
- Click Save to save the changes (if you have made them) in the Process Taxable Payments annual report window.
- Click Export to save the report to your disk. The Select Location for Tax Payment Report File window opens. Enter a file name for the report, we recommend using the date in the file name. The default location for the file is \\ProgramData\Intuit\ReckonAccounts 2013\<level> 2013\<Company Name>\Export Files\Tax Payment Reports. For Reckon Accounts Hosted users, the default location is “Q:\ “
- Click Save. You will receive a message that the file has been successfully written. If you have electronic key, you can upload the file to your ATO portal
- Note: If you make any changes to the data whilst the Taxable Payments Annual Report Window is open, the report needs to be closed and reopened for it to refresh.
4. How do you Amend the TPAR report if incorrect?
If you require to submit an amended report to the ATO, select the Generate Taxable Payments as ‘Amended’ option in the Process Taxable Payments annual report window.
Select the supplier that has been amended from the list and click Create Report.
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