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Payroll set up for Cash basis accounting

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Experienced Cover User Mgbkbiz
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Mgbkbiz
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Payroll set up for Cash basis accounting

Hi,

 

The company I am working for is set up on cash accounting basis.  The are using Account Right 19 on cloud.

Presently they pay wages from spend money and the accountant then advises how much PAYG and Super to pay and the owner pays.

 

Is this correct way to pay wages for this type of accounting?  Would there be a problem once I have checked with the accountant to set them up through the payroll and pay accordingly?  Then we will be able to send a report with exact amounts to be paid.

 

This is a small business and only the owners (2) at this stage are being paid wages.  All other work done is on a contract basis.

 

Their accountant lodges all BAS and Payg amounts.

 

Appreciate some clarification.  Thank you.

Michele

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Valued Cover User bungy15
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bungy15
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Re: Payroll set up for Cash basis accounting

Hi @Mgbkbiz

 

I would definitely set them up to be paid through payroll. It will be a much easier and less time consuming process. You will also be able to keep track of their entitlements, PAYG and super amounts at all times.  

You will need to decide whether to start now or wait until the new financial year. It might be easier to start on 1 July as that will give you time to set it all up and may make it less confusing for this quarters BAS and payment summaries etc.

You might also need to check that how super is being paid is compliant with the ATO's superstream.

Hope this helps Smiley Happy

Ultimate Partner Marilyn
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Marilyn
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Re: Payroll set up for Cash basis accounting

Hi there,

 

Bundy has given you a good answer.  One other thing I would check is if you have the correct PAYG tax. This can be done via Set up on the menu bar then go to General Payroll Information.  It is here where you will find Tax Table Revision Date

 

Cheers

 

 

MARILYN AMESBURY
Amesbury Consulting
MYOB Certified Consultant
MYOB Accredited Trainer
Certificate IV Assessment Workplace & Training
Phone & Fax:: 02 9773 1411
Mobile: 0408 73 1411
Milperra NSW 2214
Email: marilyn@amesburyconsulting.com.au
Experienced Cover User Mgbkbiz
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Mgbkbiz
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Re: Payroll set up for Cash basis accounting

Thank you so much for your help.  This helps greatly Smiley Happy

Experienced Cover User Mgbkbiz
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Mgbkbiz
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Re: Payroll set up for Cash basis accounting

Thank you Marilyn for your help with this:smileyhappy Smiley Happy

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