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Subcontractor Payments Reporting

Subcontractor Payments Reporting​

The Australian Tax Office (ATO) require companies who obtain services from a sub-contractor engaged in the Construction Industry to submit an annual return of payments made to such sub-contractors.

If you are paying sub-contractors and are engaged in the Construction Industry then you will need to add additional information regarding your sub-contractor.

To do this edit the sub-contractor account (or enter when adding a new supplier) and enter the following information.

  1. Is Sub-contractor. Select the check box to denote that that supplier is a sub-contractor

  2. Tax Certificate. Enter the suppler tax certificate number

  3. Report Taxable Payments. Select the check box to signify that this sub-contractor should be included in the Sub-Contractor Payments Report.

  4. Sub-Contractor is Private Individual. If the Sub-contractor is a private individual, as opposed to a company, then select the check box. ** Note:** If you select private individual you will need to have a contact for that sub-contractor setup in the contacts section. If no contact is setup a message informing you to set it up will appear.

  5. You will also need to ensure that you have a valid BSB number, Bank Account Number, ABN number and a valid address setup for the supplier.

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Image Description

The "Open Supplier C161 - Broshley Sub Contractors" screen in ABM showing the Account Details tab. The toolbar shows Save & Close, Copy, Paste, Print, Send To, Delete, and Attachments buttons. The left navigation panel lists tabs: Account Details (selected), Purchasing, Addresses, Purchase Graph, Transactions, Orders, Regulations, Discounts, Documents, Recent Purchases, Product List, and Contracts. The main area shows two sections: "General Information" on the left with fields for Supplier Type (Active Supplier), Supplier Title, Account Code (C161), Supplier Group (showing "Sub Contractors"), Account Status, Category (set to "Catalogs: Contractor"), Remarks, ABN Number (with "Pending" checkbox), Tax Status (set to "Taxable"), Tax Certificate (showing a certificate number), and an "Is Sub-Contractor" checkbox (checked). Additional fields show "Certificate Dates" with expiry dates, "Report Taxable Payments" checkbox (checked), and "Sub-Contractor is a Private Individual" checkbox. On the right side is "Account Information" with fields for Currency, Balance, Contact (showing "System Administrator"), Batch, Credit Limit, Trading Terms (set to "Invoice Basis"), and Pay By Day.

Sub-Contractor Account

Generating the ATO File

To generate the ATO file select Business Activity Statement (select GST & ATO Returns tab) and select Generate ATO File.

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Image Description

The "Business Activity Statement" screen in ABM, similar to the standard BAS view. The toolbar shows buttons: Calculate BAS from Accounts, Save BAS, Print BAS, Send BAS To Excel, and Generate ATO File. The main area shows the Business Activity Statement tab and Calculation Sheet tab. Fields display GST on Sales, GST on Purchases, and Net GST Payable values. The BAS grid shows various tax line items with their amounts. On the right is a Reconciliation section showing "Calculated GST at Box 3" and "Difference to Accounts". A note at the bottom explains that amounts and percentages can be adjusted by direct entry into the columns, and that changes will affect information sent to the ATO but will not be reflected in accounts.

When you select generate the ATO file the following screen will appear.

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Image Description

The "ATO Subcontractor Payments Settings Information" dialog window. At the top is a message: "Please make sure all information is entered and correct." The form contains the following fields: Contact Name (empty), Contact Telephone (empty), Branch Number (set to "001"), Street Address Line 1 (showing "18 Strand Street"), Street Address Line 2 (empty), Suburb, Town or Locality (empty), State or Territory (set to "OTH"), Postcode (set to "3000"), Country (empty), Start Date (showing "01/02/2013" with a calendar picker), End Date (showing "31/01/2014" with a calendar picker), Output File (showing "...\TPAR.TXT" with a browse button), and a "Test Run Type" checkbox (checked). OK and Cancel buttons are at the bottom.

  • Contact Name: Enter the contact name of the person responsible for making the return in your organization.
  • Contact Telephone: Enter a contact telephone number
  • Branch Number: If a business has one ABN but multiple branches, each branch will have an individual branch number.You should show your branch number in the boxes provided. If you do not have a branch number leave the boxes blank.
  • Address: Enter the address together with state and post code.
  • Start Date: The starting date of the report.
  • End Date: Select the end date for the report.
  • Output File: Enter the name of the file and select the folder where this file is to be saved.
  • Test Run: If you want to test the output before sending the file to the ATO then select Test Run.