What type of employee reporting is required around EOFY for 2021?
Reporting payments to contractors
If you pay contractors or if you are a contractor you need to know about the Taxable Payments Reporting system.
- The taxable payments reporting system requires businesses in certain industries to report payments they make to contractors (individual and total for the year) to the ATO. ‘Payment’ means any form of consideration including non-cash benefits and constructive payments. Taxable payments reporting is required for:
- Building and construction services
- Cleaning services
- Courier services
- Information technology (IT) services
- Security, investigation or surveillance services
- Mixed services (providing one or more of the services listed above)
The annual report (TAPR) is due by 28 August 2021.
The ATO has contractor payment data from 158,000 businesses from 2019-20 and is using data analytics to ensure that contractors have reported all income received and where required, their GST obligations have been fulfilled.
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Stuart Reynolds is the founder of Fullstack Advisory, an award-winning accounting firm for businesses leading the future. He is a 3rd generation accountant who specialises in tech companies, agencies and entrepreneurs.