05-01-2012 12:00 PM
I was wondering if I could get a help related to PAYG withholding accounting period.
In general I process salaries right on the last day of the month related to the pay month..E.g.. salary for January I will process on 31.January. Then MYOB payroll automatically sends the appropriate figures to each account with the date 31.1. so when I need to run some report..E.g.. PAYG withholding for Activity statement report the figures will appear in the January report.
But there was a month when I processed salaries lets say third day of the month following the month of the salary..E.g.. salary for February I processed on 3rd March and the figures were sent to each account with the March date. Then when I run Activity statement for February the amount for PAYG withholding was not included in the report and appeared in the March report...That leaves me with February report figures zero and March double the amount (February+March salaries...).I am not sure what is correct. I tried to research some information about PAYG withholding tax but didn't really find anything helpful.
What is the right way to report the figures on Activity statement and what is the right way for the accounting? Is there a way how I can post the salary figures to the accounting with the date related to the pay month e.g.. January to January even though I processed the salary in February?
We report on a cash basis. Could anyone help?
Solved! Go to Solution.
05-01-2012 12:08 PM
The PAYG reported to the ATO will be as per your activity summary. The wages are only deemed to be income to the employee and an expense for you when actually paid. ie in March.
If you need the figures to be correct on a profit and loss you would need to do an adjustment as at 28/2 to bring the wages in as an expense for that month and then reverse the entry in march.
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