Carry out business activity and instalment activity statement tasks

Transcription

1 A Step by Step Approach to Carrying out BAS and IAS Tasks using MYOB AccountRight Plus v19 Copyright Notice: Copyright 2010 Software Publications Pty Ltd. All rights reserved. No part of this material may be reproduced or copied in any form or by any means (graphic, electronic or mechanical, including photocopying or by information retrieval systems) without permission in writing from Marian Brown. Originating Author: Marian Brown Dip T [Commerce], MICB BAS Agent Cert IV Workplace Training and Assessment, Cert IV in Financial Services [Bookkeeping] MYOB Certified Consultant for 15 years, BAS Agent MYOB Accredited Author, MYOB Publisher, MYOB Accredited Trainer MBS Training Services Pty Ltd sales@mbsts.com.au Revised August 2010: Cindy Drew, Dip Teach, B Ed., MICB BAS Agent Cert IV in Financial Services [Bookkeeping] MYOB Certified Consultant 10 years MYOB Accredited Trainer, MYOB Developer Training and Business Services Pty Ltd Publishers: Software Publications Pty Ltd [ABN ] Head Office Sydney Unit 10, 171 Gibbes Street Chatswood NSW 2067 Phone: Web address: ISBN Printed August 2010 FNSBKPG404A Carry out business activity and instalment activity statement tasks Software Publications Pty Ltd 2010 A STEP-BY-STEP APPROACH TO CARRYING OUT BAS and IAS TASKS USING MYOB v19 Table of Contents

2 Copyright/Trademark Information: MYOB, MYOB AccountEdge, MYOB AccountRight, MYOB AccountRight Plus, MYOB BusinessBasics, MYOB FirstEdge, MYOB M-Powered, MYOB M-Powered Services, MYOB M- Powered Bank Statements, MYOB M-Powered Invoices, MYOB M-Powered MoneyController, MYOB M-Powered Payments, MYOB ODBC Direct, MYOB PowerPay, MYOB AccountRight Premier and MYOB AccountRight Enterprise are registered trademarks or trademarks of MYOB Technology Pty Ltd and their use is prohibited without prior consent. Ceedata, Solution 6 MAS and Xlon are registered trademarks or trademarks of Solution 6 Holdings Limited, a member of the MYOB group. Bpay is a registered trademark of Bpay Pty Ltd, ABN MasterCard is a registered trademark of MasterCard International Inc. Microsoft, Access, Excel, Internet Explorer, Office, Outlook, Smart Tags, Windows and Word are registered trademarks or trademarks of Microsoft Corporation in the United States or other countries. VISA is a registered trademark of Visa International Service Association. Other products mentioned may be service marks, trademarks or registered trademarks of their respective owners. Screen captures from MYOB AccountRight Plus v19 reproduced with permission. Limitations of Liability: This material is designed to provide basic information on how to use MYOB AccountRight/AccountRight Plus v19. Because business circumstances can vary greatly, the material is not designed to provide specific GST or business advice for particular circumstances. Also, because aspects of the GST are complex and detailed, the material is not designed to comprehensively cover all aspects of the GST. Further, the laws implementing GST and rulings and decisions under those laws may change. Before you rely on this material for any important matter for your business, you should make your own enquiries about whether the material is relevant and still current, and whether it deals accurately and completely with that particular matter; and as appropriate, seek your own professional advice relevant to that particular matter. This information is for the general information of MYOB clients and is not to be taken as a substitute for specific advice. Consequently Software Publications Pty Ltd will accept no responsibility to any person who acts on information herein without consultation with Software Publications Pty Ltd. The information in this book is relevant to MYOB AccountRight Plus v19. Earlier or later versions of MYOB software could change the instructions in this workbook. References to websites may also change owing to the changing nature of this type of information. Table of Contents - A STEP-BY-STEP APPROACH TO CARRYING OUT BAS AND IAS TASKS USING MYOB v19 Software Publications Pty Ltd 2010

3 PAYG Withholding System The processing of payrolls and the deduction of PAYG Withholding have already been covered in A Step by Step Approach to Establishing and Maintaining a Payroll System or other texts. In this unit you will process a few pays but will concentrate on the reporting of the PAYG Withholding, Voluntary Withholding and ABN Withholding on the Activity Statement. A business must deduct PAYG Withholding from the following payments: salaries, wages, allowances, bonuses or commissions paid to employees payments to company directors payments to office holders eg members of parliament payments to members of the Defence Forces or Police Services return to work payments eligible termination payments payments for unused leave compensation and sickness or accident payments payments to individual contractors under a voluntary agreement payments to individuals under labour hire arrangements if carrying on a labour hire business and payments for a business to another business where the supplier has not provided an ABN. Processing pays (i) Open the data file used in Unit 6. Version 19 BASUnit519.MYO (ii) Check that the payroll year is the current year you are using. If not correct, select Start a new Payroll Year in the File Menu. Note : The Student Edition of AccountRight v19 only has the tax tables for the financial year (iii) Employees are paid weekly by cheque. 104 Unit 8 - A STEP-BY-STEP APPROACH TO CARRYING OUT BAS AND IAS TASKS USING MYOB v19 Software Publications Pty Ltd 2010

4 (iv) Information about employees already set up in the data file: Both employees are full-time clerical workers, paid overtime, meal allowances if overtime is worked and a car allowance for the use of their car to go to the Post Office, bank and farm. The meal and car allowance are not taxed. Both employees make a donation to Greenpeace of $2 per pay. Tony contributes $20 additional tax each pay. (v) Process the following pays for the current month as follows. Week 1 ending 4 th month, paid by cheque 4 th month Name of Employee Lindy Browning Tony White Payroll details Worked 20 hours 18 hours personal leave 25 km car allowance Net Pay = $ Worked 38 hours 6 hours overtime x meal allowances Net Pay = $ Week 2 ending 11 th month, paid by cheque 11 th month Name of Employee Lindy Browning Tony White Payroll details Worked 38 hours 2 hours overtime x 2 40 km allowance Net Pay = $ Worked 38 hours 1 hour overtime x km car allowance Net Pay = $ Week 3 ending 18 th month, paid by cheque 18 th month Name of Employee Lindy Browning Tony White Payroll details 38 hours holiday leave 38 hours leave loading Net Pay = $ Worked 38 hours 20 km car allowance Net Pay = $ Week 4 ending 25 th month, paid by cheque 25 th month Name of Employee Lindy Browning Tony White Payroll details Worked 38 hours 10 km car allowance Net Pay = $ hours holiday leave 38 hours leave loading Net Pay = $ Software Publications Pty Ltd 2010 A STEP-BY-STEP APPROACH TO CARRYING OUT BAS and IAS TASKS USING MYOB v19 Unit 8 105

5 PRINTOUT 6 Payroll Register for the month Print a copy of the Payroll Register and compare with the printout below. If you identify a discrepancy, check the above details with your paycheques processed and make the necessary correction. Return to the Command Centre. PRINTOUT 7 Payroll Summary Report for the month Print a copy of this report to report on all payroll categories. PRINTOUT 8 Profit and Loss [Accrual] for the month Print a copy of the Profit and Loss for the month. On the following page you will reconcile the payroll against this report. PRINTOUT 9 Balance Sheet at the end of the month Print a copy of the Balance Sheet. On the following page you will reconcile the payroll against this report. Reconciling the Payroll for the month Printed on the following page is a Payroll Checklist for the month. Carry out each step and when completed. 106 Unit 8 - A STEP-BY-STEP APPROACH TO CARRYING OUT BAS AND IAS TASKS USING MYOB v19 Software Publications Pty Ltd 2010

6 Payroll Checklist end of month/quarter Print Payroll Register [Summary] for the period. Display and compare the Payroll Activity Summary [from paycheques] with Payroll Register Summary [from Pay History on card] for the period. Do the totals reconcile? If not, opening balances in Pay History could have been added or someone has changed the payroll amounts in the Pay History. Print Payroll Summary [to list allowances etc] for the period. Print Profit and Loss for the period. Print Balance Sheet at the end of the period. Reconcile Gross Wages in Payroll Summary with Wage Accounts [Wages, Meal Allowance and Car Allowance] in the Profit and Loss. [check for pays entered in Spend Money and Journal entries]. Gross Wages in Profit and Loss:... Gross Wages in Payroll Summary:... Reconcile Superannuation in Payroll Summary with Superannuation Expense in the Profit and Loss. Superannuation amount:... Reconcile Tax and Superannuation in the Payroll Summary with PAYG Withholding and Superannuation Payable in the Balance Sheet. PAYG Withholding amount:... Superannuation Payable amount:... If amounts do not reconcile, PAYG and Superannuation payments in the past may not be accurate. Reconcile Donations in the Payroll Summary with Donations Payable in the Balance Sheet. Donation amount:... If amounts do not reconcile, donation payments in the past may not be accurate. Software Publications Pty Ltd 2010 A STEP-BY-STEP APPROACH TO CARRYING OUT BAS and IAS TASKS USING MYOB v19 Unit 8 107

7 Voluntary Go to the ATO website and download and print a copy of Pages 1 and 2 of NAT 2772 Voluntary Agreement Form. A contract worker with an ABN and an employer can enter into a voluntary agreement. Under this arrangement, the business deducts withholding tax from payments to this contractor. The contractor will not have to pay a PAYG instalment [covered in Unit 9] on this income. With reference to NAT 2772, how much is withheld under a voluntary agreement? Example An invoice for $ was received from Mary Brown, a contractor, who has entered into an agreement for the business to withhold 20% PAYG. If Mary is entitled to a full GST credit and Brown s Enterprises is GST registered, then the transaction flows through without GST. (i) In Spend Money enter the payment of the above invoice like this. [Make sure the Tax Inclusive option is not selected.] 108 Unit 8 - A STEP-BY-STEP APPROACH TO CARRYING OUT BAS AND IAS TASKS USING MYOB v19 Software Publications Pty Ltd 2010

8 (ii) Before recording the transaction, recap the transaction. Your recap should look like this. (iii) (iv) Record the transaction. View the set up of the VWH [could also be VOL] Tax Code. Return to the Command Centre. Payment of PAYG Withholding How often you report and pay amounts depends on whether you are a small, medium or large withholder. A large withholder is an enterprise that withheld more than $1 million in the previous year. A large withholder must pay the amounts withheld electronically. A small withholder has withheld < $25,000 in the payroll year. PAYG can be reported and paid quarterly, however the business may choose to report and pay monthly to assist with cash flow. A medium withholder has withheld > $25,000 but less than $1,000,000 in the payroll year. PAYG must be reported and paid monthly. Software Publications Pty Ltd 2010 A STEP-BY-STEP APPROACH TO CARRYING OUT BAS and IAS TASKS USING MYOB v19 Unit 8 109

9 Reporting Wages and Tax withheld on the Activity Statement Wages and PAYG Withheld are reported on the Activity Statement in the following format. Label What is reported Gross payments from which you are usually required to withhold tax such as W1 ordinary salary or wages paid to full-time, part-time and casual employees, including overtime, penalties and shift and other allowances commissions, retainers, performance, incentive or bonus payments and holiday leave loadings severance, termination and redundancy payments directors fees and remuneration payments to office holders in any Federal, State, Territory or eligible local government body payments for unused annual or long service leave eligible termination payments and superannuation type payments such as pensions or annuities compensation, sickness and accident payments in respect of incapacity for work which are made as regular or periodic payments amounts paid as non-cash benefits, but not including amounts subject to fringe benefits tax payments made by labour hire agencies under labour hire arrangements to workers where the payments are for work or services carried out for a client of the labour hire agency, and payments made to an individual payee for work or services where the parties (payer and payee) enter into a voluntary agreement that amounts will be withheld from those payments. The individual must have an ABN. W2 Include here the amount you withheld from the payments at W1. This will normally be the income tax deductions on salaries and wages paid to employees, voluntary withholdings and any other special payments. 110 Unit 8 - A STEP-BY-STEP APPROACH TO CARRYING OUT BAS AND IAS TASKS USING MYOB v19 Software Publications Pty Ltd 2010

10 W3 W4 This field is used to record other amounts withheld by you for example, you can withhold amounts from investors distributions where they failed to provide their Tax File Number. The withholding rate is made at the top marginal rate, plus the Medicare levy. Interest, dividends or royalty payment made to non residents Under the GST legislation, businesses that fail to quote their ABN on invoices of more than $75 ex GST can expect nearly half of the due payment to be withheld by their customers. The amount to be withheld is 46.5% of the supply. Include the amount you have withheld at W4. You should be recording any payments you have withheld from suppliers who don t have an ABN against the NOA [ABN] tax code. If you don t already have this tax code set up in your Tax Code list, we recommend you create it. Extract from MYOB Support Notes Note: Note that in W1, only gross payments from which you are usually required to withhold tax are reported. For this reason, the meal allowance and car allowance in the exercise will not be reported in W1. Reporting Wages and PAYG withheld on the Activity Statement Exercise With reference to the Payroll Summary and Payroll Register, Voluntary Withholdings in this unit and the ABN Withholding in Unit 6 [see next page for the entry], complete the PAYG tax withheld section of the Activity Statement. A solution can be found on the following page. Software Publications Pty Ltd 2010 A STEP-BY-STEP APPROACH TO CARRYING OUT BAS and IAS TASKS USING MYOB v19 Unit 8 111

11 Entry made in Unit 6 No ABN. NOA Tax Withheld for no ABN today 6 Susan Smith - office (46.50%) $ $67.00 Total: $0.00 $78.00 $0.00 -$67.00 W1 Wages [less allowances] plus VWH gross amount W2 PAYG + VWH amount W3 NOA amount from Unit 6 Congratulations, you have completed Unit 8. Turn to Unit 9 to learn how to calculate the PAYG Instalment. 112 Unit 8 - A STEP-BY-STEP APPROACH TO CARRYING OUT BAS AND IAS TASKS USING MYOB v19 Software Publications Pty Ltd 2010