Hi
We engage several independent contractors, and due to our industry, we are required to pay superannuation for them on their contractor fees. They are not employees and are not set up in our payroll system.
I have contacted the super fund, and they were of little or no help, so does the MYOB system have a way in which these amounts can be paid?
Thanks for any assistance.
I contacted someone and basically was told there was no work around to be able to have one MYOB debit for everyone with out having those rejected runs sitting on the system.
That I would have to do Contractor super payments manually through a Super fund. I have put the answers here as a lot of people seem to be having the same problem with certain awards requiring Contractor Super be paid.
ANSWER
"No confirmed MYOB fix appears to have been released yet. This remains a known limitation in MYOB Business: the super-only pay run still passes through STP validation, so it can appear as Rejected even when the contractor is set to Other (not reported)."
"MYOB Business does not currently provide a non-payroll method. Pay Super is designed to take contributions from a payroll transaction, and requires the contractor to exist as an employee record for this process."
I also asked if the rejected contractor Payroll runs (a separate run from the regular pay run), with a zero value are just sitting in MYOB as rejected, or are these seen by the ATO as well? As I was given a message that I could be fined if these rejected pay runs were not sorted....
ANSWER
"They are separate zero-value pay runs in MYOB, but the rejected STP submission may also be visible to the ATO as a rejected attempt. The distinction is:
MYOB: The contractor pay run remains recorded separately from the normal employee pay run and shows in red as Rejected.
ATO: MYOB may have transmitted an STP event, but the ATO rejected it. It is not an accepted STP report and should not count as reported wages or income.
Super payment: The super contribution is separate from STP. If it appears under Payroll > Super payments and shows as paid/completed, the super payment can still be successful even though the STP event is rejected.
So, these entries are not simply invisible local notes in MYOB—the rejected submission attempt may reach the ATO—but they are also not accepted payroll reports. For a contractor correctly classified as Other (not reported), the rejected STP status is a known result of the current workflow."
I asked what does 'the rejected STP status is a known result of the current workflow' mean?
ANSWER
Yes, setting the contractor’s Employment Basis to Other (not reported) is correct when the contractor is not intended to be reported through STP. The rejection occurs because MYOB still creates an STP event for the separate super-only pay run. As there are no wages and the employment basis is “Other (not reported),” the ATO rejects that STP event. This is a known limitation of the current payroll-to-Pay Super workflow and does not mean the contractor card has been set up incorrectly.
I asked if this was something that was being worked on but got no more information....
Hi AnntashBP,
You’ve been following the advised process since 1 July, paying the contractor super, and are still left with rejected pay runs in red. At the moment, the guide for paying super for contractors still points to setting the contractor up as an employee, using Other (not reported) and Labour Hire, then processing the super-only pay separately. That helps get the super payment through. If you’re still seeing the same error after following the steps from our guide, please contact Contact Us so they can review it.
Cheers,
Doreen
I have been doing this since 1/7/26. Doing it this way adds the contractor super paid amount to the MYOB superannuation payment, which will be debited & paid, but this "pay run" which I was advised to do separately is always rejected by the ATO reporting system as there is no gross income....
Always comes up with a warning and I have to choose continue without reporting. Now these Contractor "pay runs" are sitting in Payroll Reporting as rejected in red.
As of this week I am now getting a message saying that I can be fined by the ATO if I have these "pay runs" sitting unreported for any length of time.
Has MYOB come up with a solution yet to be able to pay super for INVOICE contractors with out all the error and ATO messages?. We are now a few months in.
Thanks, really need assistance
Hey AdrianC1,
Yes, MYOB does have a way to pay super for contractors. You'll need to add them into your payroll as an employee so you can pick them up in a pay run. Only put the superannuation amount into their pay (leave all other amounts at zero). You can also check this link for more info.
Cheers,
Doreen
