PAYG Withholding Calculation Explanation

Hello All

I hope you are all surviving these very trying times.

Things are changing Daily and I am expecting another Stimulus #3 to be announced soon. Fingers crossed.

The Small Business Commissioner is conducting webinars which may relate to you, I encourage to have a look at their website for up and coming webinars
https://www.sasbc.sa.gov.au/ (under EVENTS on the home page)

Another website as mentioned is the One Stop Shop of accessing all the COVID 19 situation. www.australia.gov.au including all the Business Stimulus information.

Last night the Small Business Commissioner run a webinar in relation to the Stimulus and practical advise for such trying times:

Part of this webinar was more detail about the

PAYG Withholding Calculations and what it means to you.

STEP 1 Lodge your March 2020 BAS

STEP 2 PAYG Withholding part of BAS will be credited to your ATO account at 300%

STEP 3 Go to your ATO Account. Some will have a credit some may still have to pay a portion of their BAS

STEP 4 Lodge your June 2020 BAS

STEP 5 PAYG Withholding part of BAS will be credited to your ATO Account

STEP 6 Total of the credit from March 2020 plus June 2020 credit will be the total you receive for 2019/2020 FY
(this is minimum $10K maximum $50K)

STEP 7 The Total of the credit you received in 2019/2020 will also received in 2020/2021

Example 1 – Quarterly BAS Obligation

Lodge your March 2020 BAS

	BAS To be Lodged		STIMULUS
GST Collected (1A)	$15700
GST Paid (1B)	($11800)
TOTAL GST	$3900
PAYG (4)	$5000	300%	$15000	Will be credited to your ATO Account after lodgement
TOTAL BAS LODGED	$8900			You will be in CREDIT $6100 on the ATO Integrated Account

If you had a Tax Debt this will be reduced, if you had the credit ATO may deposit into your account.

Lodge your June 2020 BAS

	BAS To be Lodged		STIMULUS
GST Collected (1A)	$12700
GST Paid (1B)	($9800)
TOTAL GST	$2900
PAYG (4)	$3000	100%	$3000	Will be credited to your ATO Account after lodgement
TOTAL BAS LODGED	$5900			You will have a debt of $2900 to be paid

TOTAL STIMULUS FOR 2019/2020 $18000

2020/2021 – YOU WILL GET THE SAME AMOUNT AS STIMULUS $18000

Example 1 – Monthly PAYG – Quarterly BAS

Lodge your March 2020 BAS

	BAS To be Lodged		STIMULUS
GST Collected (1A)	$15700
GST Paid (1B)	($11800)
TOTAL GST	$3900
PAYG (4)	$5000	300%	$15000	Will be credited to your ATO Account after lodgement
TOTAL BAS LODGED	$8900			You will be in CREDIT $6100 on the ATO Integrated Account

If you had a Tax Debt this will be reduced, if you had the credit ATO may deposit into your account.

Lodge your April 2020 IAS

	BAS To be Lodged		STIMULUS
PAYG (4)	$3000	100%	$3000	Will be credited to your ATO Account after lodgement
TOTAL IAS LODGED	$3000			Nothing to Pay

Lodge your May 2020 IAS

	BAS To be Lodged		STIMULUS
PAYG (4)	$2000	100%	$2000	Will be credited to your ATO Account after lodgement
TOTAL IAS LODGED	$2000			Nothing to Pay

Lodge your June 2020 BAS

	BAS To be Lodged		STIMULUS
GST Collected (1A)	$11500
GST Paid (1B)	($8800)
TOTAL GST	$2700
PAYG (4)	$2000	100%	$2000	Will be credited to your ATO Account after lodgement
TOTAL BAS LODGED	$4700			You will pay $2700