Withhold Tax |
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Before commencing, check the current withholding tax rate with the Australian Taxation Office.
On the ribbon, go to Tools > Setups > Accounting > Tax Codes, and edit the tax rate as per advised, against the W withholding tax code.
Enter a purchase or expense order and use the W tax code as required. Jim2 will calculate the percentage of tax as per what is added against the tax code in setups.
Original amount $50 plus 49% of that amount (24.50) = $74.50
The transaction will report in the GST Session under the Purchases tab. The transaction will appear in the By Tax tab indicating a W tax code.
However, these values do not flow through to the worksheet. Please adjust manually on the worksheet as required before reporting to the ATO.
They are not reported in W4, or any other field on the GST Calculation Worksheet for BAS.
Further information Clear the Historical Balancing Account Suggested End Of Month Procedures Enter Government Support Payments Purchase a Capital Asset Under Finance Record Debtors/Creditors Contras ATO Reportable Sub-Contractor Payments Share Utility Expenses with other Businesses Understanding Debits and Credits Use Debtors and Creditors Adjustments
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