SUBCONTRACTOR REPORTING & SP2

[AnnieSainsbury]

We  have a subcontractor  for whom we have a voluntary  withholding PAYG agreement and  we pay superannuation

This arrangement  has been in place  for  a number of years and it is only  with STP2 that issues have arisen.  

The  STP2 reports for 2021/22  report the income at Items 1 (salary  & wages ) - this  should be reported as sub-contractor (sole trader)

Attached are  screen shots for payroll set up - 

Please  confirm the  set up details required for  STP2 reporting for this type of  arrangement &  how  do I  corect the STP2 EOY report 

[Steven_M]

Hi @AnnieSainsbury 

Within the Personal Details section of an employee's card within AccountRight is the option for Employment Basis. This would be where you set if the employee is full time, part time... One of those options is Other. Setting an employee to this Employment Basis will make them not reported to the ATO for Single Touch Payroll. We would recommend this Employment Basis be set if you are not required to report that employee to the ATO through that STP channel, such as if they are a subcontractor.