Super for Contractors (Inv as bill, no withholding)
Hi,
We received a bill from a contractor who does some occasional audio work, and we need to be super on it.
How do we process this in MYOB Accountright?
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Hi Kristy55555
Welcome to the Community Forum.
It can vary exactly how and how much super is paid to contractors from business to business. For this reason, you should check with your accountant what is best for your specific business needs. However, in general you can simply pay their super to the Superannuation Guarantee payroll category when processing a void pay, and clear it out through the Pay Superannuation in the payroll command centre. Specifically:- Create an Employee Card for the contractor.
- Set the Employment Basis to Labour Hire.
- Zero out all figures in the Standard Pay
- At the process Payroll screen, select Bonus/Commission as the pay frequency when processing Payroll to enter in a Void Pay for the contractor and manually fill in the amount against the Superannuation Guarantee.
Another method is for putting the payment through on a Bill. If you do this, when putting through the contractor payment on the bill, add a line to the purchase for super. This line will be against the Superannuation Payable Liability account, and will be for a negative amount. Following this you can do a spend money against your bank account, using the Superannuation Payable Liability account as the allocation account. Following this you will need to BPay the super amount through a 3rd party clearing house, such as the ATO’s Super Clearing house.
Please feel free to post again. I'm happy to assist further.
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