Taxable Payment Annual Reports are Due in 14 Days! How can I get this done?

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Taxable Payment Annual Reports are Due in 14 Days! How can I get this done?

The Taxable Reporting Annual Report is a super cruddy paper report that needs to be lodged with the ATO by 14th of July each year, listing all of your subcontractors (if you are in the building or construction industry).

That’s right. All of your contractors need to be listed, even those that just provide materials. The report needs to list the payments actually made to the contractor on a cash basis, meaning all payments made from your bank account (not just those invoiced) and may include those invoiced during the prior year that were paid this year.

The best bit about these forms is that you can only provide information for eight contractors per form. If you have more than eight, you need to write out as many forms as required. This means you need to handwrite all of your details down on each new form – each and every one!

But wait…good news. If you have a computerised accounting program, it may allow you to complete and lodge the forms electronically with the ATO.

Generally, this will only work if you have the most up-to-date version of the program, it’s been setup correctly, and you have an Auskey.

Xero is by far the easiest program to use for this reporting for the following reasons:

  • Bank feeds make it easy to automatically code expenses to a contact with little effort.
  • You can go back and set-up TPAR after transactions are coded.
  • Being cloud based, you always have the most up-to-date version.
  • Xero automatically connects to the ATO to electronically lodge.
  • PDF’s of invoices can be stored with transactions, meaning they can be easily be sourced should the ATO have any queries.
  • Xero’s help section has explicit instructions on how to set up for TPAR.

Even an awesome program like Xero needs to be set up correctly to allow the processes to work. For each and every contractor you need to enter the following information into his or her contact setup:

  • Name
  • Address
  • ABN

Should you need help with TPAR reporting, The Bookkeeper Hub has been providing these reports to the ATO for over 3 years and we’re happy to assist. We can provide training or bookkeeping services, the choice is yours.

 

 

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