Cash Flow Boost in GovReports Activity Statements

This March 2020 BAS period is certainly proving to be more demanding than usual! Registered agents and business owners are navigating the activity statement lodgment process in light of the government announcements to assist cash flow for employers.

Eligible businesses will receive between $20,000 and $100,000 as a cash flow boost from March to September in the form of PAYG Withholding credits.

The PAYGW credits offered as part of the Government economic stimulus measures will delivered as credits in the ATO Integrated Client Account (ICA) from 28 April 2020.

The cash flow boost is designed to reduce the activity statement liability. It is not a payment to the business, unless the credit results in a refund for the activity statement.

Eligibility and Amount

The ATO has detailed information about eligibility on their Boosting Cash Flow for Employers webpage. Many businesses that have made payments to employees and are up to date with activity statements and/or tax returns will be eligible but if you are unsure please check the ATO information.

Eligible businesses will automatically receive the credit, there is no need to apply for this cash flow boost.

The amount of the PAYG Withholding credit is based on the amount of PAYG Withholding reported on the activity statement.

Businesses will receive a minimum credit of $10,000 even if their withholding amount is less than $10,000.

Visit the same ATO Boosting Cash Flow for Employers webpage for details on what the business will receive.

How Does it Work?

Business owners or their registered agents must prepare and lodge the activity statement as usual with the correct amounts reported irrespective of any credits.

Once the activity statement has been lodged, the ATO will automatically apply the PAYGW credit to the activity statement account.

Business owners or agents should check the ATO ICA to ascertain the final amount payable or refundable before making any payment to the ATO.

Activity statements must be lodged by the due date as usual. The ATO can only calculate the automatic credits on LODGED activity statements.

GovReports and ATO Integration

Lodge the activity statement as usual through GovReports, reporting all amounts as usual, based on your business and payroll activity.

Go to ATO Services drop down menu, then select Sync from ATO to update the ICA balance.

After 28 April, you will be able to see any credits issued from the ATO Accounts tab in the client dashboard. We have not received specific dates that credits will be applied, therefore you may need to check the ICA again before 26 May to confirm if a credit has been applied.

The cash flow boost amount is NOT shown in your activity statement prior to lodgment.

March BAS Payment or Refund

If the March activity statement has already been paid and the business is eligible to receive a credit, this will automatically be applied to the ATO account and the credit can then be applied to the next activity statement due.

If the business is due a refund because of the PAYGW credit, this will be refunded within 14 days of lodgment to the business – check that bank account details are up to date.

If the March BAS has not yet been paid, wait until the PAYGW credit has been confirmed by the ATO and then pay the amount owing by the due date if possible.

If the business is unable to pay the March BAS, deferral of payment and/or low interest payment plans may be available. Businesses should talk to the ATO directly or liaise with their registered agent for available options.

Use GovReports to Email Lodgment Receipts and Payment Details Directly to Clients

Did you know you can customise the settings within GovReports to email your clients with a receipt directly after lodgment of a form?

You can make this a practice wide setting. Go to Settings/Lodgment Settings/Reports Setting.

Select the tick box ‘Send lodgment receipt to client’. Customise the message that is sent with the receipt. You will then need to select Client Configuration to select the clients this setting applies to.

Visit our Help Centre for details on Reports Settings.

Forms that have already been lodged can be emailed to clients from the client dashboard. Open the lodged activity statement and then select E-Mail.

From the Send E-Mail screen, you can select the statement to be emailed to the default client name and email address stored in the client details. You can also email to other addresses manually entered or to multiple email addresses.

Remember to use the GovReports practice management tools to streamline your workflow and make it as efficient as possible. Good luck this BAS period!

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