Are you a business providing service in – building and construction, cleaning, courier, road freight, IT or security industries? You may be wondering how to generate in MYOB 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) Steps to set up and generate a Taxable Payments Annual Report from MYOB software.
(1) ATO Requirements
The Taxable Payments Annual Report (TPAR) reports to the ATO about payments that are made to contractors for providing services. Some government entities also need to report the grants they have paid in a TPAR.
Contractors can include – subcontractors, consultants and independent contractors.
Contractors can be operating as sole traders (individuals), companies, partnerships or trusts.
The details you need to report about each contractor are generally found on the invoice you should have received from them. This includes:
- Their Australian business number (ABN), if known.
- Their name and address.
- Gross amount you paid to them for the financial year (including any GST).
The ATO uses this information to identify contractors who haven’t met their tax obligations.
When to lodge – due 28 August annually
There are different industries that need to report, and different start dates to begin reporting.
See our post HERE, for more detail.
(2) MYOB – The steps to set up and generate the report are:
a. How to track reportable payments in AccountRight
Once you set up MYOB, you can start marking transactions as reportable including:
- Spend Money payments made to suppliers as reportable. You can also set up a supplier so that any payments for them are automatically included in reporting.
- Bills and Orders recorded for suppliers. Payments received against these transactions will be included in the report.
You can then generate a report that will help you complete the ATO forms, or create a report file you can lodge electronically.
b. Set the reporting preference
- Go to the Setup menu > Preferences. The Preferences window appears.
- Click the Reports & Forms tab and select the preference, I Report Taxable Payments Made to Contractors.
- Click OK.
Code Transactions for TPAR – 2 ways – per specific transaction or per supplier
- Specific Transactions to report only – Each time you record a Spend Money or Purchase transaction, the Reportable Payment option will appear in the transaction window. Select this option to mark the transaction as being a reportable payment.
- Suppliers to report (if you need ALL their transactions marked by default as Reportable)
- Go to the Card File command centre and click Cards List. The Cards List window appears.
- Click the Supplier
- Click the zoom arrow on the left of the card you want to set up. The Card Information window appears.
- Click the Buying Details
- Select Report Taxable Payments. In the message that appears, choose whether to report any existing transactions for the supplier for the current financial year. Note that you can later remove certain payments from reporting.
- Click OK. The Cards List window reappears. Whenever the card is selected in a Spend Money or purchase transaction, the transaction is marked as reportable by default (can remove certain non-applicable transactions later if required).
c. To create the taxable payments report:
- Go to the Purchases command centre and click Report Taxable Payments. The Taxable Payments Assistant opens.
- Click Next. The Company Information window appears.
- Enter any company information that doesn’t appear by default.
- Click Next. The Review window appears.
In this window, you can click Review Your Transactions to:
- Review all transactions marked as reportable.
- Change the reporting status of transactions.
- Click Next. The Create window appears.
- Click View Taxable Payments Report. The Taxable Payments Annual Report (Detail) report appears. You can use the report to help you complete your ATO forms, or print to keep for your records.
- If you’re lodging the Taxable Payments Annual Report file:
- Click Create Taxable Payments File. The Save As window appears.
- Select the location to store the file and click Save.
- Click Finish to close the assistant.
d. Lodging your report electronically
You can lodge your report electronically, using the ATO’s Business Portal. If you haven’t already set up access to the Business Portal, you should do this so you’ll be able to lodge the report when it’s due. See the ATO website for more information.
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