AccountEdge v11.5 and later, Australia only
Some industries, including building and construction, cleaning or courier services, or government entities, are required to report to the ATO the amount of payments made to contractors for services (such as labour).
Payments need to be reported to the Australian Taxation Office (ATO) on the Taxable Payments Annual Report, or electronically.
Do I need to report payments?
There's a growing list of businesses which may need to report payments. To check the list, visit the ATO website.
Here's a quick overview
This video shows AccountRight v19 (our Windows software), but AccountEdge handles taxable payments the same way.
AccountEdge v11.5 and later have taxable payments reporting functionality. AccountEdge Pro and Network Edition v12 introduced some enhancements to taxable payments reporting functionality, including the ability to create an electronic version of the taxable payments annual report. The functionality differences between the newer and earlier versions are described, where applicable, in the instructions below.
Amending a lodged report To amend a lodged report, you'll need to lodge an amendment using the paper form available from the ATO.
To help you easily track your reportable payments, you need to update the cards of applicable suppliers. This will ensure payments made to these suppliers in the reporting period will be automatically included when you generate the taxable payments report.
Not sure which suppliers are applicable?
Check with your accounting advisor or visit ato.gov.au/taxablepaymentsreporting.
To ensure contractors' ATO reporting obligations are adhered to, it is suggested only supplier cards be used for this purpose. Employee cards can also be set up to track taxable payments, but this isn't recommended. To do this, open the Payroll Details tab in the employee's card and select Other as their Employment Basis. Then select the Report on Taxable Payments option and, if known, enter their ABN.
To update a supplier's card to track taxable payments:
- Go to the Card File command centre and click Cards List. The Cards List window appears.
- Click the Supplier tab.
- Click the zoom arrow next to a supplier.
- On the Profile tab, ensure the supplier's address details are current and complete.
- Click the Buying Details tab.
- Select the option Report on Taxable Payments as shown below.
- If known, enter the supplier's ABN in the A.B.N field.
- Click OK. The supplier is now setup for taxable payments reporting.
- Repeat steps 3 - 8 for all suppliers who need to be setup for taxable payments reporting.
By selecting this option all payment transactions for this supplier are automatically marked as reportable.
The Taxable Payments Annual Report can be generated via the Purchases command centre by clicking Report Taxable Payments (or Print Taxable Payments in older versions). This opens an assistant which helps you:
- review your company information
- review the reportable transactions
- review the payees (suppliers/employees) you have setup for taxable payments reporting
- print the Taxable Payments Annual Report for your records, to provide your payees a list of their reportable payments, or to help you complete the pre-printed forms provided by the ATO
Additional functions in AccountEdge Pro/Network Edition v12 (and later) The taxable payments assistant in these versions also allows you to:
generate an electronic version of the Taxable Payments Annual Report which can be lodged electronically via the ATO's Business Portal or Tax Agent Portal. To lodge the Taxable Payments Annual Report electronically, you will need to register to use the ATO's online services. To register, visit ato.gov.au/register. Note that you cannot lodge this report via the ATO's ECI software.
generate and customise the Taxable Payments Annual [Detail] report - this can be for your records, or to help you complete the pre-printed forms provided by the ATO.
- Go to the Purchases command centre and click Report Taxable Payments. The Taxable Payments Annual Report window appears.
- Check your company information details and add anything that's missing. Also make sure the applicable reporting year is specified as shown in this example:
- Click Next. The Report Taxable Payments window appears.
- To review the displayed payees who have taxable payments, click the zoom arrow next to their name. Their card will be displayed.
- To review the payments for a payee to be included in the report, click the zoom arrow next to an amount . The Review Taxable Payments window appears.
Select the payments to be reported. Only selected payments will be included in the report.
Transactions that include non-reportable payments, such as "Voluntary Withholding" and "No ABN/TFN" amounts should not be reported on the Taxable Payments Annual Report and you will be alerted if such a payment is selected. If unsure about which payments should be reported, check with your accounting advisor or visit the ATO website.
- Click OK to return to Report Taxable Payments window.
- Select the payees you want to generate the report for. Only those selected will have their payments reported.
- If creating the Taxable Payments Annual Report as an electronic file:
- Click Create Taxable Payments File. The Save As window appears.
- Specify where you want to save the file, such as your Desktop.
- Click Save. The Taxable Payments Annual Report electronic file will be created, ready to lodge electronically, or on an electronic storage device (such as disk or USB drive). For more information on submitting the Taxable Payments Annual Report electronic file, visit the ATO website. Note that you cannot lodge this report via the ATO's ECI software.
- If generating the Taxable Payments Annual [Detail] Report (for your records or to help you manually complete the ATO's forms):
- Click Print Taxable Payments Detail Report. The Taxable Payments Annual [Detail] Report is displayed in the Report Display window.
- [Optional] Click Customise to add or remove fields shown in the report. Note that you cannot save a customised version of this report.
- [Optional] Click Print to print the report for your records or to help you complete the ATO's pre-printed forms ready for lodging.
- [Optional] Click Send To then choose an output option for the report.
- If generating a Taxable Payments Report for each payee (for your records, to provide to your payees, or to help you manually complete the ATO's forms). It isn't mandatory to provide your suppliers a list of their reportable payments, but if they request this information this is a quick and easy way to do it.
- [Optional] Specify the number of copies to be printed using the Print Copies field in the top-left corner of the window, then select the suppliers/employees whose payments will appear on the report.
- Click Print Taxable Payments Report.
- Select the printer you want to use.
- Click Print.
If you need to submit an amended Taxable Payments Annual Report to the ATO, you will need to do this using a pre-printed form available from the ATO. You will not be able to submit the electronic report generated from AccountEdge. However, you can use the printed report from AccountEdge to help you complete the pre-printed ATO form. On the ATO form, you can specify that it's an amended report.
For more information on obtaining, completing and submitting an amended Taxable Payments Annual Report, speak to the ATO or visit their website.
If submitting the Taxable Payments Annual Report from an overseas address, the ATO require that your address is entered in a very specific format when using the Taxable Payments Assistant:
- Enter the overseas State and Postcode in the Suburb field.
- Enter OTH in the State field. The Postcode field will default to 9999 and cannot be changed.
For example, the overseas address 275 Central Park West, Apartment 14F, New York, New York, USA 10024 should be entered in the Taxable Payments Assistant as follows:
Similarly, if payers have payees with overseas addresses they should edit the supplier card and ensure the address format is as follows:
If an overseas payee address has the incorrect format, it will not fail when lodged electronically with the ATO, however, a warning will be displayed to indicate that the address has an invalid format.