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
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
This problem still persists. I am also having this issue and frankly surprised that there hasn't been a MYOB resolution yet. Paying Contractors weekly directly to the Superannuation fund in addition to the weekly employee payments via Payroll is really not good enough. When will this be resolved? Tick tock people.
Hi JoJo10,
Thanks for checking in. At the moment, the best way to get a contractor’s super through is to follow the steps in this guide. When you record the pay, you might see a pop-up asking you to update the contractor’s details. If that appears, you can just click Record anyway and keep things moving. I know that’s not quite the smooth fix you were hoping for, but it has helped other users successfully process super payments for their contractors.
If it still doesn’t work, you can reach out to our team through the online support options on our website. They can give you a hand while you’re setting up the contractor.
Cheers,
Princess
Thank you Princess, but I have followed the guide and there appears to still be conflicts present when trying to submit. As SuFish said, there is an employment basis conflict which seems to indicate that Other (Not Reported) is not being accepted by the ATO. As also said, the only way for it to be accepted is to change the employment basis from Other to Labour Hire. This change puts Contractors into the STP loop on an employment basis which is incorrect - this was also said by SuFish.
I would like you to have another go at trying to submit Contractor Super using your Guide and setting Income Type as Labour Hire and Employment Basis Other (Not Reported). I have just tried this again with this result. Please look into this asap. Time is running out for us.
I have had another go at it, this time in the Browser (not Desktop); different look - same result.
Going from MYOB to STP reporting is the main issue for me as well. I'm very nervous about having STP reports that look like this. Will this create problems at the end of FY? The one below is from following myob's paying contractors instructions to the letter.
The other issue that has come up is if I pay a contractor's invoice for their fee, but I have paid them allowances through payroll then STP reporting says I cannot choose Labour Hire categories. So still teething problems.
