Effective 1 July 2012, all companies in the building and contracting industry must issue a “Taxable Payments Report” to the ATO. This report lists the payments that have been made to contractors that work for the business by billing as an ABN holder. Please note that the instructions below are for v19.
We have had many clients miss this deadline last year, and be reminded by the ATO that the report must be lodged.
Here is the process in MYOB, and the concepts are similar in Xero:
1. Set the preference to yes that indicates that the company must issue a taxable payments summary
2. Go to the card file and click cards list. Select the supplier that you wish to nominate as reportable, and go to the buying details tab. Tick the box “report on taxable payments”.
3. Repeat step 2 for all suppliers who need to be set up for taxable payments reporting.
4. To generate the taxable payments annual report, go to the Purchases Command Centre | Report Taxable Payments.
5. A wizard is opened which helps you check your company information, review the reportable transactions, review the suppliers you have set up, and print the taxable payments annual report. Please note that you can generate an electronic file and lodge this via your business portal.