Building and Construction businesses under the microscope
Have you lodged your Taxable payments annual report yet?
Business in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year.
"Business need to report the payments to contractors to the ATO by 28 August each year.".
Most advanced accounting packages today can handle this extra reporting burden but they do need to be setup correctly or the task of reporting is quite a tedious and time consuming affair.
The information that is reported is similar to a PAYG Summary that an employee receives but outlines the total amounts paid to the contractor during the year.
Payments you need to report:
payments made to contractors for building and construction services;
contractors can be sole traders (individuals), companies, partnerships or trusts;
if invoices are for both labour and materials, whether itemised or combined you report the whole amount of the payment, unless the labour component is only incidental;
the definition of building and construction services is very broad; and
dry hire is not reported but wet hire needs to be reported.
To read more about the examples of building and construction services click on this link.
If you need Ezetax to help you with setting up your MYOB, Xero, QuickBooks or reporting requirements with the ATO, book a meeting with one of our team members via our website.