Adding a retention trust account
If your company withholds retention from contractors, you're required to hold their retention amounts in a retention trust account (RTA).
You can have one RTA for all your trust account projects, or you can open multiple RTAs. For each RTA, you also need to create a new cash account.
- In MYOB Advanced, go to the Trust Accounts form (MYCR3000).
- On the form toolbar, click the Add New Record icon (
). - Complete the fields:
- Account ID – Enter a short name for the account.
- Trust Account Type – Select Retention.
- Financial Institution – The approved bank you opened your RTA with.
- Cash Account – Select the cash account you set up specifically for the RTA. This automatically completes the Account Name, BSB and Account Number fields.
- Account Status – Select Active.
- Date Of Opening – The date the RTA was opened with the financial institution.
- Date of Closure – Leave this blank.
- Date of Intended Use – The date when you'll start using the RTA for trust projects.
- Date of Transfer – Leave this blank.
- Transferred To – Leave this blank.
- On the form toolbar, click the Save icon (
). - Notify your trust beneficiaries that you've opened the account.
What's next?
Notify the relevant trust parties that you've created a trust account.
Then, you're ready to start making payments to and from your trust accounts. If you need to, you can also make changes to your trust accounts.