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SharonSL's avatar
SharonSL
Trusted Cover User
21 days ago
Solved

Subcontractor Super through Payroll

Hi, I've paid subbie invoices and their super manually for years. I've read that I can pay their super through payroll so I thought I'd give it a try however, even though I select 'Other (Not Repor...
  • Earl_HD's avatar
    Earl_HD
    20 days ago

    Hi SharonSL,

    Great question, and you’re on the right track wanting to run the subcontractor’s super through payroll.

    Because the ATO now expects contractor super to be reported via STP2 when the software supports it, you’ll need to set the subcontractor up as an employee for super-only using Labour hire (not Other – not reported) as the employment basis, and then either use your existing Superannuation Guarantee category or create a separate Subcontractor Super category if you’d like to track their super separately.

    You can keep using your existing Superannuation Guarantee category, or create a separate “Subcontractor Super” category if you want to track their super separately, and it’s always best to confirm with your accountant or the ATO that super is required for this subcontractor and that Labour hire is the correct STP income type for their situation.

    Regards,
    Earl

Earl_HD's avatar
Earl_HD
MYOB Moderator
20 days ago

Hi SharonSL,

Great question, and you’re on the right track wanting to run the subcontractor’s super through payroll.

Because the ATO now expects contractor super to be reported via STP2 when the software supports it, you’ll need to set the subcontractor up as an employee for super-only using Labour hire (not Other – not reported) as the employment basis, and then either use your existing Superannuation Guarantee category or create a separate Subcontractor Super category if you’d like to track their super separately.

You can keep using your existing Superannuation Guarantee category, or create a separate “Subcontractor Super” category if you want to track their super separately, and it’s always best to confirm with your accountant or the ATO that super is required for this subcontractor and that Labour hire is the correct STP income type for their situation.

Regards,
Earl

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