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dsirvine1's avatar
dsirvine1
Experienced Cover User
3 years ago

PAYG WITHHOLDING PAYABLE ACCOUNT

Hi, I have noticed that in my PAYG Withholding Payable account I have a balance of $1,250,314.00 going back to 2013. 

Can someone tell me if Im meant to be doing Journal Entries each month when I pay my PAYG to the ATO to clear it out?

So

Debit Payg Withholding

CR Bank Account

 

Or is this something that just accumulates? If not can someone advise please? Then also how do I fix the issue going all the way back to 2013.

 

At the moment when I pay my BAS or PAYG I simply pay the money from my bank account into an ato integrated account that was set up my accountant who said pay it through spend money into this integrated account. But I dont feel like this is right?

 

Maybe its meant to be a Journal entry from PAYG WITHHOLDING to the ATO Integrated account?

 

Any help would be great.

 

 

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  • Tracey_H's avatar
    Tracey_H
    Former Staff
    3 years ago

    Hi dsirvine1 

     

    Thanks for your post. The PAYG Withholding payable account is a liability account so should reflect your actual PAYG liability.

     

    If you don't use an ATO integrated  client account you'd typically record the BAS payment as a Spend money transaction and allocate the amounts to the relevant accounts:

     

     

    If you do use an integrated client account, you'd typically record a general journal allocating the amounts to the applicable accounts and the payable amount to the integrated client account:

     

     

    When you pay the BAS you'd record a Spend money transaction allocated to the integrated client account.

     

    I'd recommend checking with your accountant about the correct journal entry and clearing the PAYG liability account.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.