Accounting for Student Internship Supervision Fees - Superannuation and PAYG Compliance
Hi Everyone,
I operate a childcare centre, and we occasionally receive payments from universities for hosting student interns. We intend to pass the full amount of these payments to the specific teachers who act as supervisors for these students.
I have a few questions regarding the correct way to process these payments in MYOB and remain compliant with ATO regulations:
1. Superannuation Guarantee (SG): If we treat this payment as part of the teacher’s salary/wages, we are concerned about the additional cost of Superannuation. If we pay the teacher the exact amount received from the university, the added 12% Super expense would result in a financial loss for the centre.
o Is this payment considered Ordinary Time Earnings (OTE)?
o Is there a compliant way to pass this on without the employer incurring extra Super costs (e.g., deducting the Super component from the total amount received before payment)?
2. PAYG Withholding: Does this payment require PAYG withholding? If we pass the full amount to the teacher through payroll, should it be taxed at their marginal rate, or can it be treated as a different type of allowance?
3. MYOB Setup: What is the best way to set up this "pass-through" payment in MYOB AccountRight? Should it be a specific Allowance category, and how should the Tax and Superannuation boxes be ticked to ensure the centre’s books balance to zero for this transaction?
I want to make sure the teachers receive their fair share while ensuring the business does not end up out of pocket due to on-costs.
Thanks in advance for your help!
