Contractors and Payday Super
This is what I did. 1 - Create or Update the Contractor’s Employee Card 2 - Set the Personal Details>Employment Basis to Other (Not Reported). This means you won't be reporting the contractor's sup...
Forum Discussion
I left some info off the top of this post. This is the whole post.
I have asked this question via myob support but have had no response as yet so throwing this out there to see if anyone has any suggestions while I wait for a response.
Background - I have been paying super to contractors using myob payroll for a few years with no issue. But from 1 July 2026, the ATO want us to report both QE (qualifying earnings) and the super liability and from 1 July 2027, they’ll reject STP reports that don’t have both. However reporting contractors in STP is still optional, so my question is - how do I use Accountright payroll but avoid reporting to the ATO?
I followed myob's instructions to set up contractors up for Payday Super but at the end of the process I still ended up with a Rejected STP report.
This is what I did.
1 - Create or Update the Contractor’s Employee Card
2 - Set the Personal Details>Employment Basis to Other (Not Reported). This means you won't be reporting the contractor's super payments to the ATO
3 - Leave the Personal Details>Employment Category set to Permanent.
4 - Click the Taxes tab. For the Tax File Number, enter 000 000 000. For the Income Type, choose Labour hire. This information is required to avoid AccountRight prompting you with a message about missing information every time you pay the contractor's super in a pay run.
5 - For the Process all employees paid dropdown, choose Bonus/Commission and dismiss the info box that appears about tax.
6 - For the pay dates, enter the same date you paid the contractor’s invoice
After doing this I recorded the pays and that is when it goes wrong. I still have to sign in and I get sent down the STP path which ends up with a STP REJECT. The error message is
"STP error code CMN.ATO.PAYEVNTEMP.000272"
Can this just be ignored?
If not, how can we pay super on behalf of our contractors using MYOB Paysuper while avoiding STP reporting?
Hi SuFish,
Totally get why you’re checking how this will work with the new ATO rules. If contractor super keeps going through payroll, it'll still sit inside the STP. The alternative is to run them via invoices (contractor bills/expenses) and pay their super manually or direct to the super fund, instead of through Pay Super. The error CMN.ATO.PAYEVNTEMP.000272 is coming from how the employment basis is mapped for STP. For contractors that are being reported, you’ll want to change their Employment basis to Labour hire, which is the option that maps to the ATO’s non-employee code and lets their super report cleanly without that error.
Cheers,
Doreen
Thanks for jumping in Doreen.
So are you saying we can't continue to pay contractor's invoices through Accounts Payable and their Super through payroll?
Or are you saying you can continue to pay contractor's invoices through AP and Super through payroll but you have to use Labour Hire for their Employment Basis? If I do this the reporting continues through STP but there is no need to report QE.
Appreciate your thoughts.
Su
Hi SuFish,
You’ve got it! You can definitely keep paying your contractors’ invoices through Accounts Payable. Since contractors shouldn’t be reported via STP, set them up as an “employee” with an employment basis of “Other (Not Reported)”. This keeps them out of STP while still letting you pay their super through Pay Super.
From there, create a separate $0 pay run that only includes their super contribution, then pay and authorise the super via Pay Super. Here’s a link you can check out for more details on paying super for contractors. However, it’s always worth checking in with your accountant or the ATO so you’re sure everything’s set up just right for your contractor arrangements.
Cheers,
Princess
