How does Kontuly work out PAYG withholding W1 and W2?
Kontuly has no payroll, so it reads PAYG withholding from your accounts: W1 (gross wages) is the movement on the wages accounts you choose, and W2 (tax withheld) is what's credited to your PAYG withholding account in the BAS period. Choose the accounts in Settings under BAS: PAYG, and the GST Report adds W1, W2 and label 4.
- Open Settings and find BAS: PAYG.
- Check Wages accounts (W1: gross wages). It starts with Wages & Salaries. Use Add a wages account… if gross wages go to more than one expense account.
- Check PAYG withholding account (W2: amounts withheld). It starts with PAYG Withholding Payable. To leave W2 out, choose No withholding account (leave W2 out).
- Click Save PAYG settings.
How do I record a pay run?
Post each pay run so these accounts move. For example, a manual journal:
| Account | Debit | Credit |
|---|---|---|
| Wages & Salaries | gross wages | |
| PAYG Withholding Payable | tax withheld | |
| Bank | net pay |
Or code the net pay bank line to Wages & Salaries and post the withholding by journal (debit Wages & Salaries, credit PAYG Withholding Payable).
What's counted?
- W1: the movement on your wages accounts in the period. Balances brought in when you converted from another package aren't counted.
- W2: amounts credited to the withholding account in the period. Paying the ATO isn't counted, and a voided pay run takes its withholding back out.
- 4: PAYG tax withheld, the same as W2. Withholding from suppliers with no ABN isn't tracked.
The GST Report says to check my PAYG accounts
If you converted from another package, choose your own wages and withholding accounts in BAS: PAYG and save; until you do, the report reminds you. It also warns if a chosen account is deleted or changes type.
Does Kontuly do Single Touch Payroll?
No. Kontuly doesn't run payroll, pay super or report to the ATO. Use your payroll service for that, and record the totals in Kontuly so your BAS figures are right. Check the figures with your accountant or registered BAS agent.
Related questions
- How do I add PAYG instalments to my BAS in Kontuly?Set PAYG income tax instalments in Kontuly's BAS PAYG settings as your ATO notice amount (T7) or rate (T2), and the GST Report adds 5A, 8A and 9.
- How do I prepare my BAS figures in Kontuly?Kontuly's GST Report prepares the G1, 1A and 1B labels of your BAS, plus PAYG labels if you set them up. Here's how to run it for your BAS period.
- How do I record paying the ATO for my BAS in Kontuly?Code the ATO payment or refund bank line to your GST account in Kontuly, splitting out PAYG withheld and instalments. It won't appear on your next BAS.
More about gst, bas and tax
- Cash or accruals: when does Kontuly report GST?On the accruals basis Kontuly counts GST on the invoice or bill date; on the cash basis, when the money is paid. How to choose and what changes.
- How does Kontuly work out GST on a bank transaction?Kontuly treats bank amounts as including GST and splits the tax out at the account's rate, or a rate you choose, when you code the line.
- How do I prepare a TPAR (taxable payments report) in Kontuly?Flag contractors on their contact and Kontuly's Taxable Payments Annual Report totals what you paid each one, with GST, for your TPAR. You lodge it.
- What GST codes does Kontuly use, and can I add my own?Kontuly starts with GST 10%, GST Free, Input Taxed and No GST. What each means on your BAS, how account defaults work, and how to add a rate.
- When is my BAS due, and what does Kontuly's GST card show?Kontuly's Dashboard GST card shows the GST payable or refund for the period and the BAS due date, from your BAS frequency in Settings.