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PAYG Tax Instalments

 

 

 

Improvements

Improvements made to the More Details Panel:

  1. Supervisory levy no longer pre-filled when a financial year is selected in the More Details Panel. The levy will pre-fill only when A) the entry to 85000 is a credit entry; and B) the financial year selected in the More Details Panel is one year prior to the financial year of the date of the transaction input/matched.  
  2. A "Click to fill" option has been added below the Supervisory Levy field on the More Details Panel of account 85000. Selecting this option will populate the supervisory levy based on the financial year selected in the Financial Year field.  

PAYG Instalments will now also display in Section C Label L2 of the SMSF tax return. Click here for more information. 

Simple Fund Desktop Users

Important: PAYG instalments were previously posted to account 850/004 in Simple Fund Desktop. This account does not exist in Simple Fund 360. See below for the new process.

Navigation

 

From the Main Toolbar, go to Accounting.

Select Transaction list

Select New Transaction.

Select Bank Statement.

 

 

Income Tax Instalments - How to Enter

  1. Input the date of the payment and a reference number (Simple Fund 360 will automatically produce a reference number, but it is editable). You can include a description of the payment in the Description box. 

  2. Under the Account heading, select the bank account from the Input Bank Account box. Next, type 85000 into the second account box and select Income Tax Payable from the drop down list. 



  3. Input the instalment amount as a debit and the Tax Instalment Details panel will appear below. 



  4. For the current year instalment, select the current financial year. 



  5. For an instalment payment, ensure that an amount has not appeared for the instalment. Change to zero if an amount does appear.  



  6. Select Post to add the instalment payment. The instalment will appear in the Statement of Taxable income and in the Tax return as PAYG instalments raised for the current year.
    Section D

 

BAS/IAS lodgement now available.

Bank Feeds - How to create a rule for PAYG Instalments 

The Transaction Matching screen can be used to automatically allocate PAYG Instalment payments. 

Last Quarter Instalment (paying June instalment in July on a Cash Basis )

  1. Input the date of the payment and a reference number (Simple Fund 360 will automatically produce a reference number, but it is editable). You can include a description of the payment in the Description box. 

  2. Under the Account heading, select the bank account from the Input Bank Account box. Next, type 85000 into the second account box and select Income Tax Payable from the drop down list. 



  3. Input the instalment amount as a debit and the Tax Instalment Details panel will appear below. 



  4. For the prior year instalment, select the prior financial year. 



  5. For an instalment payment, remove the amount that appears in the SMSF Supervisory Levy field. 



  6. Select Post to add the instalment payment. This instalment will appear in the prior year's Statement of Taxable Income report and in the prior year's Tax return as PAYG instalments raised.
    Section D

Last Quarter Instalment (paying June instalment in July on an Accrual Basis )

I want to enter in June 2016 PAYG instalment into the fund, and want it to be included in the calculation of total tax raised for the 2016 year (even though the June 2016 instalment will not be paid from the bank account until July 2016)

1. Enter General Journal for June Instalment

e.g.

Dr   Account 85000

    Cr Sundry Creditors ( Or other Laibility Account

 

STEPS

  1. On the Transaction, screen create a new general Journal Transaction for June 30 (2016)
  2. Debit account 85000 Income Tax Payable/Refundable



  3. In more details panel ensure amount is entered into field 'Tax(refunded) / Paid. 



  4. In the Financial Year field, select the CURRENT financial year (2015-16)


  5. For an instalment payment, remove the amount that appears in the SMSF Supervisory Levy field. 



  6. Enter a Credit journal to a Liability account such as Sundry Creditors or Create your own liability account. 
  7. Select Post to add the instalment payment. This instalment will appear in the prior year's Statement of Taxable Income report and in the prior year's Tax return as PAYG instalments raised.
    Section D

 

2.  In July Payment is made to Liability Account 

In July, the Bank Transaction will be posted to the Liability Account selected in step 1. 

e.g 

Dr. Sundry/ Accounts Payable Account

                                       Cr. 60400 - Bank

 

 

Troubleshooting - Financial year drop down is empty 

When selecting a financial year for the instalment, the Financial Year drop down list is empty? What is causing this?

The drop down list will be empty if the fund's reporting period in Fund | Fund Details is open beyond the current financial year date range. For example, if the current financial year is 1/7/2014 - 30/06/2015, and the date range in Fund Details displays as 14/06/1994 - 30/06/2015, you will need to adjust the date range back to 01/07/2014 - 30/06/2015. See Fund Details.  

Reconciliation of PAYG payments

The Tax Reconciliation Report can be used to reconcile PAYG Payment transactions. 

Please refer to Reconcile PAYG payments

Statement of Financial Position and Statement of Taxable Income Reconciliation 

Be advised that not all instalments for the financial year will show on the statement of financial position. Only instalments paid in the current year will display. Alternatively, the statement of taxable income will show all instalments for the year (even if paid in July/August of following financial year) to agree alongside the SMSF Annual Return. 

 

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