Paying Superannuation to Subcontractors
With the $450/month threshold being abolished as of the 1/7/22, does MYOB have any way of handling paying subcontractors superannuation via the Pay Super portal? These subcontractors are not paid thr...
Forum Discussion
Hi Jamdev
Thanks for your post. In order to process super payments through Pay Super the super accrual needs to be processed through Process Payroll. A common way to handle super for subcontractors is to create an employee card and process only the super accrual amount in payruns. The subcontractor invoices are recorded and paid through Purchases.
If you're not sure if this method is suitable for your situation I would recommend checking with your accountant.
Please let me know if you need further help.
If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.
If we were to still pay our subbies through Purchases, but enter a separate employee card for them just to be paid the superannuation through Myob's Pay Super, in their employee card file under Payroll Details, would we select "Labour Hire" as the Employment Basis, and set the Hourly rate as $0, and set up a separate superannuation payroll category and call it "Superannuation Guarantee Subcontractor" and make sure this category is selected Under the Superannuation tab in this card file, then manually enter the amount of super to pay in the process payroll step before recording the pay? Would this work?
Hi Jamdev
Apologies for the delay in getting back to you. We can't advise what you should select as the Employment basis and Employee income type (STP Phase 2), you will need to check that with the ATO or your accountant.
Whether you create a new superannuation payroll category or use the default category will depend on your business requirements, so is also something I'd recommend speaking to your accountant about. From a software perspective, if you want the contractor super to be reported separately in the AccountRight reports you could create a new super payroll category and a new super contractor expense account. Select the new expense account as the Linked expense account in the super payroll category.
You're correct that you will need to manually enter the super amount when processing payruns for the contractors. All other amounts and hours should be zero.
Please let me know if you need further help.
If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.
