Set up payment tasks

Overview

Payment tasks in TaxLab are used to manage and review tax payments required for entities. Before beginning with payment tasks, users should check the settings that determine the provisional tax liabilities and complete all tax payment information. 

Confirm payment tasks

When a new entity is added to the software, income tax payment tasks create by default. Provisional tax tasks will create for the current tax year, and a terminal tax task for the previous tax year. This happens even if no subscription is added. Tasks will then create for all subsequent tax years that TaxLab has made available for return preparation. To display or hide income tax payment tasks:

1. From the TaxLab home screen select the name of the entity.
2. Select the Tax years tab.
3. In the Payment Tasks column select or unselect the check boxes to display or hide payment tasks for that tax year.

Confirm tax dates

The software determines the number of income tax payment tasks and the due date from an entity's:

• balance date and whether the tax year is a standard 12-month period or a transitional year, which will impact the due dates of provisional tax payment tasks
• EOT (Extension of time) status, which will impact the due date of a terminal tax payment task
• GST filing frequency, which will impact the quantity of payment tasks

When an entity is created, the software defaults the EOT status to ‘Y – With EOT’ and the GST filing frequency to ‘Two monthly’.

Update settings for a single entity:

1. From the TaxLab home screen, select the name of the entity.
2. Select the Tax years tab.
3. Confirm the start and end of income tax year dates are correct.
4. Select the relevant tax year.
5. Confirm or update the EOT status or GST filing frequency by selecting each dropdown.

If the EOT status or GST filing frequency is updated in a tax year, the setting rolls forward to future tax years for that entity.

Confirm tax payment transactions

TaxLab has integrations with Inland Revenue (IR), Tax Traders and Tax Management New Zealand, which means income tax payment transactions for linked entities can be retrieved and displayed in the software using automated data feeds. This is important for payment tasks, because the software uses these transactions to calculate provisional and terminal tax liabilities, as well as balances outstanding at each payment date. Integrations are usually set up by your organisation Administrator, as part of your initial setup. To confirm whether an IR integration is active for your organisation:

1. From the TaxLab home screen, in the navigation bar select Administration > Integrations.
2. From the Integration ID list, find either the IRD number for the client agency list the entity is on (for tax agents) or the IRD number of the entity itself (direct filers).
3. Confirm that the IR transactions service column displays a green "Connected". 

Tax Traders and TMNZ integrations are only visible by the user that set them up, so contact an organisation Administrator to confirm whether these are active. Once confirmed that integration/s are connected:

1. From the TaxLab home screen, find the name of the entity, and select Open from the Income Tax column.
2. From the navigation bar select Workpapers > Tax Payments.
3. In the tax payments section, expand out all transactions using the arrows.
4. Confirm that payment transactions from the relevant integrations are displaying.

If a payment is retrieved via an integration, it will display with a green dot next to it. A grey dot means it has been added manually. To add a payment manually, use the New button. We do not recommend creating transactions for active integrations as this creates a risk of duplication. If there are missing transactions, for active integrations, please contact TaxLab Support.

For tax payment transactions to impact provisional and terminal calculations, they need to be tagged as Tax paid. Select the badge to turn it blue, or select the transaction and select the check box next to "Apply as tax paid." Transactions that come through the IR feed will automatically have the Tax Paid badge applied.

What's next?

Navigating payment tasks

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