A payment summary is, in simple terms, a statement from you, the employer, that outlines the full amount of wages your employee has earnt over the financial year
. It also shows the full amount of tax that has been paid in the financial year. As an employer, your legal obligation is to ensure that your employee receives their payment summary within two weeks of the end of the current financial year or within four weeks of an employee leaving your company.
There are various types of payment summaries, dependant on the types of payments you’ve made through the financial year. If your contractor has not supplied you with an ABN, you must give them a payment summary showing details of the payment/s.
You can also provide a receipt, remittance advice or a similar document along these lines but it must contain specific information, including your business name, ABN and branch number if that is applicable. The payee’s information, how much tax was withheld, total amount paid and some specific wording. These are all details what Tradie Bookkeeping Specialists can assist you with. As we are Trade industry specific, we hit the ground running when it comes to helping to make your compliance up to scratch.
Even if you have held the services of an employee to whom you have not had to withhold tax, they must still be issued a payment summary.
If the payroll dept of your accounting software is well setup and done with trade specific knowledge, these types of reporting can be generally quite smooth and trouble free.
If a payment summary has to be amended, if for example, incorrect payment codes have been used or the employee’s payment amount is incorrect, then a new payment summary must be issued with the correct information. We will run the EMPDUPE file as required by the ATO once all reporting has been processed and verified.
Let Tradie Bookkeeping Specialists take the effort out of your payment summaries. Let us help you get it right!
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