TPAR - Taxable Payments Annual Reporting FAQ

Step 1 – Select the option to 'Use Taxable Payments for Contractors'.

1. Open the Cashflow program and select Suppliers on the left under Invoice and click on [Tools] then select [Options].
   
2. In [Options] click on [Advanced Preferences] and check the box to [Use Taxable Payments for Contractors].
   

Please Note: A valid ABN is required in Business Details because of validation rules when submitting Taxable Payments to the ATO via Standard Business Reporting.

Step 2 – Identify the suppliers who are contractors for ‘Taxable Payments Reporting’.

1. Go to the Suppliers tab, select the supplier that will need to be included for the Taxable Payments and click on the [Modify Supplier] button.
   
2. Tick the 'Taxable Payments Contractor?' option. 

Please Note: This option will not be visible unless the [Use Taxable Payments for Contractors] checkbox in [Options] is switched on. If the 'Contractor' option is switched on and no ABN has been recorded, a message will advise that PAYG Withholding is required. You will be able to continue if no ABN is supplied but it will affect Supplier Payments. Due to validation rules when submitting Taxable Payments to the ATO via Standard Business Reporting, you will also receive messages if there are no values recorded for the Address, City, State and Postcode. 

Step 3 – Identify Purchase Invoices to be included in the Taxable Payments Report.

When creating a 'Purchase Invoice' that meets the requirements, select the [Include on Taxable Payments Report] option. 

 

Please Note: This option will only be visible if the [Use Taxable Payments for Contractors] checkbox in [Options] and the [Contractor] checkbox in [Supplier Details] are selected.

Step 4 - Record the Payment (Money Out) to the contractor

If all suppliers have an ABN, recording ‘Money Out’ is the same as for any other supplier payment.

However, if a Supplier does not have an ABN recorded and the invoice has been marked as reportable, the business has to withhold 46.5% in PAYG Withholding.

 

Step 5 – Print/lodge the 'Taxable Payments' report

Please Note: This report will only be listed if the [Use Taxable Payments for Contractors] checkbox has been selected in [Options]. In that case, it will be listed in [Reports] under Invoice.

There are 3 report options and Standard Business Reporting (SBR) can also be used with this report.

1. Suppliers Annual Report: Summary information in a format to send to your contractors.
   
2. Summary: The one line totals for each Supplier to match the numbers on the Suppliers Annual Report (whole dollars only).
   
3. Detailed: The Detailed Report lists all Payments, Invoices and Returns (and includes cents). 
   

 

Once you have selected the options for the report, you can select the [Lodge Via SBR] button to send it to the ATO.

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