The use of an EXPORTED Bank CSV (Spreadsheet Format) file can reduce your business transaction entry task down to a fraction of the usual process time where the only
user chore is to select an expense or income code from a list.
Should you get the opportunity (some banks permit this, some don't) to include the expense code as part of the detail field at the time of making the payment, then there is no more to do. The system will capture the code and process the transaction in the background. This code identifier will vary from bank to bank. Here is a sample line of a NAB CSV File (Excel Format) with the aforementioned *code being included at the time the payment was made. Note the code *0101.14 in the detail.
Date,Amount,Account Number,,Transaction Type,Transaction Details,Balance,Category,Merchant Name
29 May 23,-348.00,123456789, ,TRANSFER DEBIT,ONLINE G8570057864 *0101.14 GO DADDY SOFTWARE,11963.00,Internal transfers,
The added bonus with CSV Transaction processing is that the bank account is, by using this method, reconciled.
The software is desktop based.
9/2/2021 - The ATO has confirmed that STP reporting for closely held payees will commence from 1 July, after it had granted these employers a one-year exemption in the midst of the pandemic last year.
Guidance released by the ATO on Monday has revealed that small employers can report payments to closely held payees through STP in three ways: reporting actual payments in real time, reporting actual payments quarterly or reporting a reasonable estimate quarterly.
The first option, reporting actual payments in real time, is in line with how employers would report information on their arms length employees through STP on or before each pay day.
The option to report actual payments on a quarterly basis will be due on or before the due date for quarterly business activity statements (BAS).
The final option to report a reasonable estimate quarterly will allow employers to report quarterly amounts that are equal to or greater than 25 percent of the payees total gross payments and tax withheld from the previous finalised payment summary annual report (PSAR).A game changer
The Tax Institutes senior advocate, Robyn Jacobson, said that while the option was welcomed, tax practitioners would need to carefully consider the implications for clients who commonly determine salaries, wages or directors fees after the end of the financial year.
For those who have for many years ascertained salaries, wages or directors fees to closely held payees post-year-end and either amended their BAS or just dealt with the tax obligations upon lodgement of the individual tax return, this is a game changer, Ms Jacobson told Accountants Daily.
The ATO will not impose any failure to withhold penalties as long as you have complied with this reasonable quarterly estimate.
There would, however, be general interest charge, and if you have not met your SG obligations, which in this case would be 28 July, then there would be SGC liabilities.
What this does is allow a concessional approach to reporting the information through STP, and as far as PAYG withholding is concerned, you have got the ability to adjust post-year-end subject to the imposition of GIC.
While a finalisation declaration for arms length employees is required by 14 July each year, the ATO will allow employers with closely held payees up to the due date of the payees income tax return to make a finalisation declaration.
The ATO also notes that STP reports will need to be lodged through an STP-enabled solution, and cannot be lodged through the ATO portals or through a BAS.
Reference: Accountants Daily
|Taxable income||Tax on this income|
|0 - $18,200||Nil|
|$18,201 - $45,000||19c for each $1 over $18,200|
|$45,001 - $120,000||$5,092 plus 32.5c for each $1 over $45k|
|$120,001 - $180,000||$29,467 plus 37c for each $1 over $120k|
|$180,001 and over||$51,687 plus 45c for each $1 over $180k|