The Tax Office has provided information on what to do if you make an error with your PAYG Withholding. With the introduction of single touch payroll, this information is necessary for all employers.
If you have withheld the correct amount, and the error was simply a reporting error made on your BAS, you will need to correct this by revising your original BAS for that period. Please let us know if you would like any assistance to do this.
If you have not withheld an amount when an amount should have been withheld, or if you have withheld the wrong amount, you need to notify the Tax Office directly in writing. This error should not be corrected on a BAS or through your payroll system until you have received a response from the Tax Office.
The letter to the ATO needs to include all of the following information:
- The title “Voluntary Disclosure – PAYG Withholding.”
This is important to ensure that you do not lose your deduction.
- Your business name.
- Either your contact details or our contact details.
- The name of the person (or entity) that the payment was made to.
- The date the payment was made.
- The amount of the payment.
- The amount that should have been withheld.
- A signed and dated declaration, declaring that the information provided is true and correct and that you are authorised to disclose the information.
For employers that are using single touch payroll, it will be necessary to submit an “update event” if they have already finalised their records for the financial year.
If you are not yet required to be using single touch payroll (this only applies to employers with closely held employees) it may be necessary to lodge an amended PAYG Payment Summary and possibly an amended PSAR (payment summary annual report.)
If you have any queries, or require any assistance, please let us know. It is possible for us to lodge the relevant declarations electronically via Tax Agent Online Services.
Contributed by Kerryn Groves.