Step 1– Select the option to 'Use Taxable Payments for Contractors'.
Open Invoice Manager to the Suppliers section and click on the [Options] icon. Click on [Advanced Preferences] and check the option 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’.
Select a Supplier to whom the rules apply and click on the [Modify Supplier] button. Click on the '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 'Reportable 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 the [Purchase] reports for Invoice Manager.

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

Suppliers Annual Report: Summary information in a format to send to your contractors.

Summary: The one line totals for each Supplier to match the numbers on the Suppliers Annual Report (whole dollars only).

Detailed

The Detailed Report lists all Payments, Invoices and Returns (and includes cents). 

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