Businesses in the building and construction industries need to know how to report Taxable Payments Annual Report (TPAR) – so how do we set up the Reckon ONE file, how do we generate the report and when is the due date to report?
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 Reckon ONE software.
1 ATO Requirements
You may need to lodge a Taxable payments annual report by 28 August each year if you are a:
- Business in the building and construction industry;
- Government entity;
- May extend to Couriers and Cleaners.
The Taxable payments annual report reports to the ATO about payments you have made to contractors for providing services. Some government entities also need to report the grants they have paid and payments they make to certain other entities.
Contractors can include subcontractors, consultants and independent contractors.
They can be operating as sole traders (individuals), companies, partnerships or trusts.
See our post HERE, for more ATO detail.
2 Reckon ONE – The steps to set up and generate the report are – (a) Set the system, and then (b) Create the Report
(a) Set up
- Click the “cog” icon at far top right of screen > Settings > Book Settings under General > Ensure all Business/Company info is completed – especially Company Name, ABN, Address, Contact, Phone > Save
- Back to Settings > under Tax Settings > General > Are you Registered for Tax? > Yes and fill in options below > Save
- Set up Suppliers > Contacts in Left side Menu > Suppliers. For each supplier subject to TPAR (contractors) click its name to open, and at top right, tick Subject to TPAR > Verify ABN left side is best. Save and Close. Repeat for all applicable suppliers.
- In transactions – you can tick in each transaction, if subject to TPAR also, and de-select individual transactions if not applicable when generating the TPAR report later.
(b) Create TPAR Report
- Click Tax in Left side Menu > TPAR
- There are 3 tabs – All, Draft and Lodged
- To start, click Add at top right. Select reporting year required and say NO to Amendment (unless it is)
- This gives a list of your TPAR suppliers
- Click the arrow on the left of each supplier and you can see all the separate transactions. You can de-select any that don’t apply
- Generate File – click this at top right – this generates a TPAR.C01 to upload via the ATO Business Portal – it saves as a Download
- Print report form top right, as a record
- Email a PDF to the default email (as in your Settings, General, Email Settings)
- Once lodged, click LODGED and the TPAR becomes Read only.
For a quick video, go here –
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