Forum Discussion

12 months ago

How to pay contractor on MYOB + Transport

Hi, Im new to MYOB and i have a worker who has his own ABN ( contractor). He sends invoices for his work every forthnight, which also includes transportation separately. question 1- How do i ...

Princess_R
12 months ago
Hi fisco,

Thank you for your post. I'd like to extend you a warm welcome to the Community forum. I hope you find it a great source of information.

The handling of contractors depends on the kind of work and agreement made, as well as how you wish to see this information in the books.

The first thing I recommend you do is determine if your worker is a contractor or an employee, according to the ATO. This link to the ATO website has a tool that can help you work that out: Employee or contractor decision tool. There are penalties if you pay someone as a contractor if the ATO determines they are an employee, so it's important that you get it right.

If it is confirmed to be a contractor, then you can set him up as a supplier, which will make it easier to keep track of his invoices and payments. Then you can process payments for the contractor's invoices.

Regarding transportation, if the transportation cost is billed separately, create a separate entry for it. You may create a Spend Money transaction. Enter the payment details, selecting the appropriate expense account for transportation.

While we can provide a general view of how to handle this matter, it’s advisable to consult your accountant for advice tailored to your specific business situation. Feel free to reach out if you have more questions or need further assistance.

I'll provide some Help articles you may visit:

Create bill

Pay bills

Reportable contractor payments

If my response has answered your inquiry, please click "Accept as Solution" to help other users find this information.

Cheers,

Princess

Princess_R

MYOB Moderator

12 months ago

Hi fisco,

Thank you for your post. I'd like to extend you a warm welcome to the Community forum. I hope you find it a great source of information.

The handling of contractors depends on the kind of work and agreement made, as well as how you wish to see this information in the books.

The first thing I recommend you do is determine if your worker is a contractor or an employee, according to the ATO. This link to the ATO website has a tool that can help you work that out: Employee or contractor decision tool. There are penalties if you pay someone as a contractor if the ATO determines they are an employee, so it's important that you get it right.

If it is confirmed to be a contractor, then you can set him up as a supplier, which will make it easier to keep track of his invoices and payments. Then you can process payments for the contractor's invoices.

Regarding transportation, if the transportation cost is billed separately, create a separate entry for it. You may create a Spend Money transaction. Enter the payment details, selecting the appropriate expense account for transportation.

While we can provide a general view of how to handle this matter, it’s advisable to consult your accountant for advice tailored to your specific business situation. Feel free to reach out if you have more questions or need further assistance.

I'll provide some Help articles you may visit:

Create bill

Pay bills

Reportable contractor payments

If my response has answered your inquiry, please click "Accept as Solution" to help other users find this information.

Cheers,

Princess