Paying Super for Contractors
Hi Community, We have a contractor for which we are required to pay super for. I have set this contractor up as an employee according to the MYOB guidelines. We processed a zero pay and added t...
Forum Discussion
I have been paying Contractors super via MYOB STP since the beginning with no problems.
I have selected Labour Hire as the Employment Basis and Labour Hire as the Income Type.
It gets reported and lodged via my STP reports along with the employees super because that is what is it.
Try not to over complicate it people
There should be the option named Contractor. I know this is not the correct wording as they are not Labour Hire, but this is what MYOB says to do in their instructions and it works.
That's interesting.... because as per MYOB Moderator's response above they instructed me "to set your employee's employment basis as "Other- Not Reported" and the income type as "Labour Hire." which I followed and resulted in an error when updated STP reporting each time.
The MYOB instructions on their website as to how to pay super for a contractor actually just states to add them as an employee https://www.myob.com/au/support/myob-business/payroll/superannuation it does not actually provide guidance to the employment basis or income time.
Good to know that you can set both employment basis and income as Labour Hire and that this actually works. That was precisely the answer that I was after when I first asked the question (above). However, that was not the answer I received from MYOB moderator.
AGAIN, it would be really helpful if MYOB were transparent and provided clear guidance so as to avoid us all the confusion.
As you said in response above,
"Xero does have the option to select "Contractor" so we know it can be done.. We do not care what is behind the IT scene but the wording for bookkeepers and Payroll staff should be straight forward and logical. This is just not logical as Labour Hire is NOT the correct wording.
We do not have time to try to figure this stuff out. Please add the option "Contractor" and you(MYOB) can code it as you like in the background. "
