Contactors hold with ABN

Hey Carmen88,

 

To handle super for contractors with an ABN, you’ll need to add them as an employee in MYOB so you can process their super contributions correctly. If you’re paying them through invoices they send, also set them up as a supplier so you can pay those bills like normal. When you run payroll for their super, just enter the super amount in their pay and leave everything else at zero. You can also check the FAQs from this link for more info.

 

Cheers,

Doreen

at lot of people have had trouble with MYOB being able to report to the ATO for subcontractors via payroll and it was mentioned a year or so ago that MYOB does not have the proper systems in place to be able to report as the ATO wants.

 

Therefore it may be best to use this suggestion

 

Pay the contractor via spend money expensed to contractors, chq number for each subbie is their first name or surname.

At the end of the month or quarter run the accounts transaction report filtered to the contractor expense and display.  I will then hide fields not needed i.e. Src, job no.  I then export to excel.  Sort the data by the ID no column containing their name.  Insert a line at end of subbie payments, add the auto sum formula, in the cell next to that I enter the formula cell x 0.12.

Once done for first subbie i will copy that line and then insert that line after each subbie.  At the bottom of them all i have all the super amounts adding to give a total and also have a cell working the total of payments made for the month times the super rate, for my crosscheck.  Both should agree.

If the subbies charge for something other than labour, it should not be expensed to the subcontractors expense so should not come into the equation.

As this is being done via account transactions report then the amount expenses to that account will be net of GST which is what super should be calculated on.  If you use MYOB as your clearing house for paying super, you unfortunately can't get the subbies into that unless you do process them via payroll.  You would therefore lodge the super return with your default super fund and pay it to them.

copy of my spreadsheet attached.