super for subcontractors

Hi Buddi,

Thank you for your post.

I'm sorry for the late response. I understand that you're looking for the best way to handle subcontractors, and I'm here to help.

Subcontractors can indeed be complex and potentially costly if not handled correctly. It's crucial to accurately classify your worker as either a contractor or an employee, as per the guidelines of the ATO. To assist you in this process, the ATO website provides a useful tool: Employee or Contractor Decision Tool. It's highly recommended to consult with the ATO or your trusted accountant for further clarification. 

However, a common way to handle super for subcontractors is to create an employee card and process only the super accrual amount in pay runs. This help article, Superannuation, has detailed information to assist with this. Kindly get to the bottom of the article and look for FAQ's: How do I pay super for a contractor?

Please feel free to reach out if you need further assistance.

If my response has answered your inquiry, please click "Accept as Solution" to help other users find this information.

Cheers,

Princess

Hi Princess,

Thank you very much for your help here.

I've created an employee card for the contractor and processed payroll only for Super liability.

Unfortunately it comes an error code: ATO Error Code:CMN.ATO.PAYEVNTEMP.000272 when finalising the pay.

I've chosen Other( Not reportable) as the Employment Basis.( I guess this is the reason for the above error)

I checked with ATO and they advised to consult MYOB to rectify this error.

Kindly advise

Thanks.

Hi. I have been using the Employment Basis of 'Other Not Reported' for suppliers for whom we pay the SGC. I have just run a payroll for the super to be paid for these suppliers and I have received an error message - PaymentBasisCode Error: Employment Basis Code in invalid (ATO error code: CMN.ATO.PAYEVNTEMP.000272. I have not had this error before. Hoping someone can help me asap as I need to have the super organised by the end of this week.

Thanks in advance.

Hey cropserv,

The error code "PaymentBasisCode Error: Employment Basis Code in invalid (ATO error code: CMN.ATO.PAYEVNTEMP.000272)" happens when the employment basis "Other Not Reported" you're using for suppliers isn't being recognised correctly. I found a Community Forum post that seems to address this issue. The key takeaway is that the employment basis "Other Not Reportable" means that payments to contractors are not reported to the ATO. To iron things out, here's what you can do:

• Process pay runs for employees and contractors separately.
• For contractors, even if a warning message pops up about the error, you can choose to "Record it anyway."

If you still encounter issues, make sure to reach out to our team on Live Chat via our virtual assistant, MOCA, or by submitting a support case via MyAccount. They'll be able to run things down for you. 

Cheers,

Doreen