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Once you have completed your Business Activity Statement (BAS) or Instalment Activity Statements (IAS) (Australia) or your end of period reporting requirements (New Zealand), you need to record the payment owing to the Australian Taxation Office (ATO) or Inland Revenue Department (IRD) or the credit you will receive from them. This topic provides guidelines on recording this transaction.

Note: A Tax Rate of NTR is used in the examples in this topic, but may not be applicable in your circumstances. Please seek clarification from your accounting advisor or the ATO/IRD regarding the GST reporting requirements for your business.

 

(Australia) What information do I need to enter my ATO payment or credit?

You will need to have access to your BAS/IAS. From this you will need to look at the back sheet. This will give you the information needed to enter your transaction.

The table below provides a brief description of the BAS fields and how an ATO payment is entered, in other words positive or negative, using a Spend Money transaction. For refunds from the ATO (entered using Receive Money), this would be reversed.

BAS Field

Field Name

Description

Example Essentials account number

In Spend Money the entry is +/-

1A

Goods and Services tax payable

This is the GST that you have collected.

2-1100

+ (Positive)

1B

Goods and services tax paid

This is the GST that you have paid.

2-1160

- (Negative)

4

PAYG withholding payable

This is the total amount of PAYG that is withheld from employees and subcontractors. This field also includes amounts withheld for No ABN and also No Tax File Number.

2-1510

+ (Positive)

5A

PAYG Instalments

This is the prepayment of PAYG, which is based on total Income and the instalment rate that is set on your BAS/IAS form, or an instalment amount.

3-1980

+ (Positive

(Australia) How do I enter a payment to the ATO?
  1. On the Banking menu, click Spend money. The Spend Money page appears.
  2. In the Pay from field, select the account the ATO payment is coming from.
  3. If you have set up the ATO as a contact, select this contact in the To field.
  4. In the Notes field, specify what this payment is for.
  5. In the Amounts are field, select Tax exclusive.
  6. Enter the accounts and amounts for the transaction. If additional lines are needed, click Add Lines. See our example transaction below.
    Image
  7. When all lines have been entered, click Save.
(Australia) How do I enter a refund (credit) from the ATO?

If you are to receive a refund from the ATO you will need to record it through a Receive Money transaction. The allocation accounts will be the same as those for an ATO payment. When entering the amounts in the Receive Money window, they should be entered opposite to the table above.

  1. On the Banking menu, click Receive money. The Receive Money page appears.
  2. In the Deposit into field, select the account the ATO payment is going into.
  3. In the Notes field, specify what this transaction is for.
  4. In the Amounts are field, select Tax exclusive.
  5. Enter the accounts and amounts for the transaction. If additional lines are needed, click Add Lines. See our example transaction below.
    Image
  6. When all lines have been entered, click Save.

 

 

(New Zealand) How do I enter a payment to the IRD?

If you owe a payment to the IRD you can record it through a Spend Money transaction.

  1. On the Banking menu, click Spend money. The Spend Money page appears.
  2. In the Pay from field, select the account the IRD payment is coming from.
  3. If you have set up the IRD as a contact, select this contact in the To field.
  4. In the Notes field, specify what this payment is for.
  5. In the Amounts are field, select GST exclusive.
  6. Enter the accounts and amounts for the transaction. Note that GST paid by you is entered as a negative value, and GST collected by you is entered as a positive value. See our example below.
    Image

  7. When all lines have been entered, click Save.
(New Zealand) How do I enter a refund (credit) from the IRD?

If you are to receive a refund from the IRD you can record it through a Receive Money transaction. The allocation accounts will be the same as those for an IRD payment.

  1. On the Banking menu, click Receive money. The Receive Money page appears.
  2. In the Deposit into field, select the account the IRD payment is going into.
  3. In the Notes field, specify what this transaction is for.
  4. In the Amounts are field, select GST exclusive.
  5. Enter the accounts and amounts for the transaction. Note that GST paid by you is entered as a positive value, and GST collected by you is entered as a negative value. See our example below.
    Image

  6. When all lines have been entered, click Save.
(New Zealand) Entering a PAYE/Kiwisaver payment to the IRD

Follow the steps described above for Entering a payment to the IRD with the following differences:

When entering the accounts and amounts for the transaction:

  • Select the KiwiSaver Payable account and enter any applicable KiwiSaver amount (both employee and employer less ESCT) you are forwarding to the IRD. 
  • Select the PAYE Withholdings payable account and enter any applicable PAYE, child support, student loan, and ESCT amounts you are forwarding to the IRD.

The Spend Money transaction needs to be entered manually each month. The total amount to be paid to the IRD is taken from your IR345 (Employer Deductions) screen where the payment due is itemised as shown in the following example:

Image

 

When entering your Spend Money transaction, you can either specify the PAYE/KiwiSaver total payable amounts as shown in this example:

Image

 

Or you can enter the individual components of the payment as shown in this example: