Reversing Transactions to Supplier and re-processing through payroll....how to???

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Mel_Mel
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Reversing Transactions to Supplier and re-processing through payroll....how to???

Hi,

 

I have a casual person who we occasionally use with the understanding he had an ABN to do the odd fill-in shift and have paid him 9 times since January 2020.  I have recently noticed his ABN has been cancelled on March 20th 2020, which is probably due to it lapsing.  Now this means I should have taxed him at 49%.  What I've decided to do out pure simplicity, is put on the books as a casual and pay him wages. 

 

I'd like to know can I reverse out the payments to him as a supplier, and re-process these as wages through payroll and tax him appropriately?  I have outstanding wages to pay him now (have been waiting for him to complete and send back his TFN declaration and super choice form etc etc) so I have wages to take the extra tax from which should sort things out for him before tax time.  I'm wondering the best way to do this please..

Thanks.   

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Mel_Mel
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Reversing Transactions to Supplier and re-processing through payroll....how to???

Hi,

 

I have a casual person who we occasionally use with the understanding he had an ABN to do the odd fill-in shift and have paid him 9 times since January 2020.  I have recently noticed his ABN has been cancelled on March 20th 2020, which is probably due to it lapsing.  Now this means I should have taxed him at 49%.  What I've decided to do out pure simplicity, is put on the books as a casual and pay him wages. 

 

I'd like to know can I reverse out the payments to him as a supplier, and re-process these as wages through payroll and tax him appropriately?  I have outstanding wages to pay him now (have been waiting for him to complete and send back his TFN declaration and super choice form etc etc) so I have wages to take the extra tax from which should sort things out for him before tax time.  I'm wondering the best way to do this please..

Thanks.   

Neil_M
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Re: Reversing Transactions to Supplier and re-processing through payroll....how to???

Hi @Mel_Mel 

 

You may want to have a chat with your accountant, as some of these payments may have been included in your BAS calculations and as such if you are now trying to pay him through Payroll this could impact those figures.

 

If he is added as an employee, you would need to select a tax table for him, and this will cause a tax figure to be calculated on the pay. You can overwrite this figure, however as an employee he would generally need to be reported through STP. Your accountant or the ATO would be able to advise and confirm if you need to report his figures through STP

Regards,
Neil

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Mel_Mel
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Re: Reversing Transactions to Supplier and re-processing through payroll....how to???

Thanks @Neil_M I figured a work around without messing up my figures.  

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