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Reckon One bookkeeping – Steps to Set up the Taxable Payments Annual Report (TPAR), report it and when due

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Published on Wednesday, 11 August 2021 09:00

Here we look at 2 key things - what the 1 Australian Tax Office (ATO) requires and how to 2 Steps to set up and generate a Taxable Payments Annual Report from RECKON ONE software online.

1 ATO Requirements

The Taxable Payments Annual Report (TPAR) reports to the ATO about payments that are made to contractors for providing services in selected industries – building, cleaning, courier, IT, security etc. Some government entities also need to report the grants they have paid in a TPAR.

Contractors can include - subcontractors, consultants and independent contractors.

Contractors can be operating as sole traders (individuals), companies, partnerships or trusts.

The details you need to report about each contractor are generally found on the invoice you should have received from them. This includes:

• Their Australian business number (ABN), if known;
• Their name and address;
• Gross amount you paid to them for the financial year (including any GST).

The ATO uses this information to identify contractors who haven't met their tax obligations.

 

When to lodge – due 28 August annually

 

There are different industries that need to report, and different start dates to begin reporting.

And you can easily lodge a NIL report online.

See our post HERE, for more detail.

2 Reckon ONE - The steps to set up and generate the report are – (a) Set the system, and then (b) Create the Report

1. Set up

1. Click the “cog” icon at far top right of screen > Settings > Book Settings under General > Ensure your Business/Company info is completed – especially Company Name, ABN, Address, Contact, Phone > Save
2. Back to Settings > under Tax Settings > General > Are you Registered for Tax? > Yes and fill in options below > Save
3. Set up Suppliers > Contacts in Left side Menu > Suppliers. For each supplier subject to TPAR (contractors) click its name to open, and at top right, tick Subject to TPAR > Verify ABN left side is best. Save and Close. Repeat for all applicable suppliers.
4. In transactions – you can tick in each transaction if it is subject to TPAR also, and de-select individual transactions if not applicable when generating the TPAR report later.

2. Create TPAR Report

1. Click Tax in Left side Menu > TPAR
2. There are 3 tabs – All, Draft and Lodged
3. To start, click Add at top right. Select reporting year required and say NO to Amendment (unless it is)
4. This give s list of your TPAR suppliers
5. Click the arrow on the left of each supplier and you can see all the separate transactions. You can de-select any that don’t apply
6. Generate File – click this at top right – this generates a TPAR.C01 to upload via the ATO Business Portal – it saves as a Download
7. Print report form top right, as a record
8. Email a PDF to the default email (as in your Settings, General, Email Settings)
9. Once lodged, click LODGED and the TPAR becomes Read only

For a quick video, go here –

 

Need help? Not sure?

Call for FREE 30min advice / strategy session today! 0407 361 596 Aust – no obligation!

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