ATO error with income type for contractors

Question

I have a client who processes payments to contractors through payroll so as to be able to track and pay superannuation. What income type should be selected in the Taxes tab for these contractors? At the moment we have selected Labour Hire but not sure if this is correct.

CloverQ · Answer

Hi @frankv3136

Contractors may be set up as Labour Hire employees, if you are unsure please do check with your accountant or with ATO directly regarding the correct set up for your business situation.