PAYG withholding amount is not calculating correctly on this quarter's BAS

[Ringwaldt]

Hi,

I have a strange issue that I can't figure out how to resolve.

I'm trying to lodge by BAS for the last quarter, but unfortunately this time, the PAYG withholding amount is not calculating correctly, and is just showing a figure of less than 10% of what it should be.

The IAS monthly lodgements have been correct, the BAS for the previous quarter was correct, the W1 and W2 allocations are correct when i run a seperate report to check those.

I don't know if this is a relevant fact or not, but also on the last page of the BAS  summary, I receive a warning at the top that states: 

We can’t e-lodge this activity statement, as the reporting basis is not what the ATO was expecting. You may still ‘Mark As Lodged’ until you fix that.

I haven't made changes to my reporting basis (cash) so i'm not sure what this error is, or if it has something to do with the incorrect PAYG figure.  Can anyone please assist me with this?

Thanks,

Sam

[GlinetteC]

Hi there, Ringwaldt.

I appreciate the detailed information you've provided about PAYG withholding on this quarter's BAS. Let me share some insights about the error message you're getting. This is due to the accounting settings that are not matching to what you have on the ATO portal. 

You'll want to check your GST Settings in QuickBooks as well as the settings in ATO. This is to ensure correct accounting method is used.

In the meantime, you can lodge the BAS outside QuickBooks to avoid incurring late fees. You may then mark as lodged to QBO.

Please let me know if you need more help. I'll be right here to help.

[caitlin2]

Hi Sam,

I am having the same issue. I found a work around for this.

Your settings may be a little different to mine but here is what I did:
Note: This will only work if you have user approval to post journals. The Tax Code we have for PAYG Withholding is called BAS-W2 on our file. 

1. The IAS journals posted by the GST Module for the months of January and February had no BAS-W2 tax code for the PAYG Withholding line item. I wasn't able to modify these journals to include a tax code so instead I copied these (i.e. made a duplicate journal on the same date as each of them).

2. In the duplicate version I included the BAS-W2 tax code on the PAYG Withholding line (Dr).

3. Then changed the Cr line to the same PAYG Withholding account but left the tax code blank.

4. I was then able to run the BAS and get the correct PAYG for March.

Hopefully this won't have any implications for June BAS.

It would be great if Quickbooks could include the tax code in the automated journal that is posted when you process the IAS lodgements through the GST module. It seems to be a backend configuration as I can't find a way to change this myself.

I hope this work around helps you.