TPARS are due 28th July, make sure you are ready

TPARS are due 28th July, we need you to check a couple of areas in xero to make sure your data is up to date, so that lodgements run smoothly. Here are some things to check in your xero file

Identify Eligible Payments: Determine which payments need to be reported under TPAR. Generally, businesses in specific industries like building and construction, cleaning, and courier/transport services are required to report payments made to contractors.

Collect Contractor Information: Gather details of contractors who received payments during the financial year. This includes their full name, address, Australian Business Number (ABN), and the total amount paid.  In your accounting package, all this information needs to be filled out.

Review Accounting Records: Review accounting records, invoices, and payment documentation to ensure accuracy and completeness of payment information. Verify that all payments to contractors are properly recorded and categorized.  When entering invoices make sure that you have ticked “reportable payment” Box

Verify ABN Validity: Verify the ABNs of contractors using the ATO’s ABN Lookup tool to ensure they are valid. Reporting incorrect ABNs can lead to penalties.

Calculate Total Payments: Calculate the total payments made to each contractor over the financial year. Ensure that all payments subject to TPAR reporting are included.