Home Forums Money matters How to pay tax?

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  • #1000224
    eddydenton
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    • Total posts: 3

    This is stupidly basic but I’ve just transitioned from sole trader to pty ltd company and all this tax withheld stuff is very new to me. I’m still just a single person business but now I pay myself a wage through the company. So once I’ve done a pay run (through Xero) and calculated how much super and tax I need to pay, how do I then pay that money to the ATO? You can pay the super directly through Xero but I have no idea what I should be doing with this withheld tax.

    #1223447
    Thrive Promotional
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    • Total posts: 146

    Single touch payroll has been brought in for all businesses now (I believe?) so if you haven’t set up, go through Xero and this will connect you direct to ATO.

    Then when you record the pay run, you will file it and the information goes directly to the ATO.

    At each BAS period (pending if you are quarterly or otherwise), you’ll complete the BAS and record the PAYG withheld and gst … and pay ATO whatever the required payment.

    #1223448
    JamesMillar
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    • Total posts: 1,676
    eddydenton, post: 270022, member: 118058 wrote:
    This is stupidly basic but I’ve just transitioned from sole trader to pty ltd company and all this tax withheld stuff is very new to me. I’m still just a single person business but now I pay myself a wage through the company. So once I’ve done a pay run (through Xero) and calculated how much super and tax I need to pay, how do I then pay that money to the ATO? You can pay the super directly through Xero but I have no idea what I should be doing with this withheld tax.

    You need to lodge the business activity statement with the ATO via the ATO business portal or accountant. That will report the PAYGW liability to them (STP is not used for this) and payment details will be available once
    Lodge the bas.

    #1223449
    JamesMillar
    Participant
    • Total posts: 1,676
    eddydenton, post: 270022, member: 118058 wrote:
    This is stupidly basic but I’ve just transitioned from sole trader to pty ltd company and all this tax withheld stuff is very new to me. I’m still just a single person business but now I pay myself a wage through the company. So once I’ve done a pay run (through Xero) and calculated how much super and tax I need to pay, how do I then pay that money to the ATO? You can pay the super directly through Xero but I have no idea what I should be doing with this withheld tax.

    Just FYI. The body of tax law and issues that apply to companies is substantially different to individuals. There are many issues that could trip you up. I strongly recommend that you get some professional help.

    #1223450
    Thrive Promotional
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    • Total posts: 146
    JamesMillar, post: 270034, member: 5318 wrote:
    Just FYI. The body of tax law and issues that apply to companies is substantially different to individuals. There are many issues that could trip you up. I strongly recommend that you get some professional help.
    #1223451
    Thrive Promotional
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    • Total posts: 146

    I thought that is what I mentioned in paragraph 2 re BAS lodgement?? ..

    #1223452
    Paul – FS Concierge
    Moderator
    • Total posts: 3,127

    “I thought that is what I mentioned in paragraph 2 re BAS lodgement?? “

    To put [USER=5318]@JamesMillar[/USER] ‘s reply another way.

    The law is broad and complex. You need detailed, granular advice an Accountant is qualified to give based on your specific circumstances.

    This is the part of his reply that is pertinent to you:

    “There are many issues that could trip you up.”

    Cheers

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