Tax and BAS Agents have access to the ATO Integrated Client Accounts for their clients and the following is a procedure that allows Tax and BAS Agent to reconcile this account. This process invol...
Updated 7 years ago
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All good comments and suggestions.
Mine is always to separate the PAYG from the BAS entry and record the PAYG using Pay Liabilities. This area provides great reconciliation functionality when used for all payroll liabilities.
Another reason is that often the PAYG is on a different reporting cycle to GST. I have both monthly PAYG and quarterly BAS, and Quarterly PAYG and monthly BAS in my client roster! So I prefer to always use Pay Liabilities for PAYG, plus any other payroll deductions such as Child Support or donations, because it makes it so simple to get the dates correct. It also gets the back end entry correct - how many times have you taken on a new client with the payroll liability accounts a nightmare? Using Payroll Liabilities ensures the PAYG Withholding liability account stays current.
My entries are:
Process PAYG and other deductions using Payroll Liabilities, debiting the ATO clearing account.
Process GST, FTC and any other non-payroll components of the BAS also to the ATO clearing account.
Pay one amount from the bank account physically to the ATO, and in MYOB treat it as a transfer brom the bank account to the ATO clearing account.