Forum Discussion

Contributing Cover User

3 hours ago

Solved

Sub - Contractor & Child Support

Hi MYOB,

I tried looking for this information and i'm not sure what heading it would be under so sorry if i have posted in the incorrect area.

We have a sub-contractor (SC) that i need to garnish for child support, i am unsure how to reflect this on MYOB.

Is it as simple as an extra line on the SC invoice stating deduction for child support?

thanks in advance

Princess_R
1 hour ago
Hi MBG,

Thanks for clarifying. As this is a section 72A garnishee notice relating to a contractor, how you record the payment will depend on whether the contractor is set up as an employee or a supplier in your file. If they’re set up as an employee, the garnished amount would generally be processed through payroll using a deduction category linked to a suitable liability account. You may find this forum post helpful.

If they’re set up as a supplier, the payment would usually be recorded through the supplier workflow, with the amount withheld tracked separately in a liability or clearing account before being paid to Services Australia. The amount and calculation should follow the garnishee notice. Because contractor payments can be treated differently depending on the arrangement and how the contractor is set up, it would be best to confirm how you’ll record the payment with your accountant.

Cheers,
Princess

4 Replies

Isaiah_C
MYOB Moderator
2 hours ago
Hi MBG,

Thanks for reaching out. No need to apologise, this is a valid question. It isn’t necessarily as simple as adding a “child support” line to the subcontractor’s invoice. The correct treatment depends on the exact notice you received and whether the payment is being made as wages, salary or a contract payment. As this can depend on the type of payment and the notice you’ve received, we recommend checking with Fair Work or the ATO before withholding anything.

Regards,

Sai
MBG
Contributing Cover User
2 hours ago
Thanks Sai,

not sure what the ATO and FW will be able to tell me regarding this, i do know already that the notice is a 72A (contractor) garnish with cents to the dollar.
I just need to know how to process/record payment in MYOB, I know how to make the payments to Services Australia.
Princess_R
MYOB Moderator
1 hour ago
Hi MBG,

Thanks for clarifying. As this is a section 72A garnishee notice relating to a contractor, how you record the payment will depend on whether the contractor is set up as an employee or a supplier in your file. If they’re set up as an employee, the garnished amount would generally be processed through payroll using a deduction category linked to a suitable liability account. You may find this forum post helpful.

If they’re set up as a supplier, the payment would usually be recorded through the supplier workflow, with the amount withheld tracked separately in a liability or clearing account before being paid to Services Australia. The amount and calculation should follow the garnishee notice. Because contractor payments can be treated differently depending on the arrangement and how the contractor is set up, it would be best to confirm how you’ll record the payment with your accountant.

Cheers,
Princess
MBG
Contributing Cover User
1 hour ago
Thanks Princess, he is set up as a supplier and i will contact the accountant.