1. Determine payments made through employee cards

You can determine how much you've paid to contractors with employee cards by running the Employee Register Summary report (Reports > Index to Reports > Payroll > Register Summary).

Run the report for Year-To-Date. The amount paid to each employee is shown in the Net Pay column.

2. Create supplier cards

To ensure a contractor's taxable payments are tracked in the new AccountRight, create a supplier card for each contractor.

As a minimum, complete the following for each new supplier card:

• On the Profile tab, enter the contractor's details.

• On the Buying Details tab, enter their A.B.N and select the Report Taxable Payments option.

  If you can't see this option, make sure that you've selected the contractor payments option in the Preferences window (Setup > Preferences > Reports & Forms tab).

3. Create clearing accounts

In order to transfer reportable payments from an employee card to a supplier card, you need to post the transaction and payment to temporary holding accounts until you create the report. This type of holding account is called a clearing account.

First, create an asset account and an expense account to allow the contractor payments to be recorded and marked as reportable. See Creating accounts for more information, but here are the basics:

Asset account

• Select Bank as the Account Type
• The Account Number and Account Name is up to you - check with your accountant if unsure.

Here's an example:

Expense account

• Select Expense as the Account Type.
• The Account Number and Account Name is up to you - check with your accountant if unsure.

Here's an example:

4. Process a Spend Money transaction for each supplier

Even though you've already paid contractors through payroll, you need to record Spend Money transactions for each supplier so their total payment can be marked as reportable. See Spending and receiving money for the details of entering spend money transactions, but here are the basics:

• In the Pay from Account field, select the asset account created above
• Select the Tax Inclusive option
• In the Card field, select the supplier (the Reportable Payment option will be selected by default)
• In the Memo field, enter information about this transaction
• In the Acct No. field, select the expense account created above.
• For the Amount, enter the total payments for the supplier based on the Employee Register Summary report generated above.

Here's an example transaction:

5. Process a Receive Money transaction for each supplier

Now that you've recorded contractor payments as Spend Money transactions, you need to balance your books with matching Receive Money transactions. This ensures your accounts reflect a single payment to each contractor. Only the Spend Money transaction will be reflected on the taxable payments report, and not the Receive Money transaction.

See Spending and receiving money for the details of entering Receive Money transactions, but here are the basics:

• In the Deposit to Account field, select the asset account created above
• Select the Tax Inclusive option
• Ensure the Date is the same as the spend money transaction recorded for the contractor.
• In the Memo field, enter information about this transaction
• In the Acct No. field, select the expense account created above.
• For the Amount, enter the total payments for the supplier. This should match the Spend Money amount recorded for the supplier.

Here's an example transaction:

Once you have completed these five tasks, you're ready to report taxable payments in the new AccountRight.