Cards: Subcontractors/Suppliers to have option for Superannuation/Workcover

[LeithMorris]

It would be useful to have a tick box available in a suppliers card file for when a supplier/subcontractor is entitled to Super and/or WorkCover.  it could then allow for a report to be done showing total payments made to these suppliers at the end of the financial year to include within your WorkCover calculations or each month/quarterly for Super to be paid for them.

"Superannuation & WorkCover payments for sub contractors"

[allroundp]

As our contractors have an abn and work mostly for us - we are obliged to calculate superannuation on their "ordinary hours". Currently I calculate super for each day monday to Friday that they have worked being it 8 hours or less. ie is they work 11 hours then we calculate super at 8 hours.

I have to manually add this up for each month in a spreadsheet and process it as an expense in Myob.

would be good to be able to get MYOB to generate it automatically like it does for the end of year report, when we have the "flag" set.

If they don't have a PTY LTD company they are still considered to be an employee and need to have super paid, but they opt to work under their own abn.

[ronatbas]

Assuming that you are already using the payroll function to enter these hours there is a fairly simple way to limit the number of hours which contribute to super. Create a new Wages category called Additional Hours, exempt it from Superannuation and tick this for each subbie. As you run the pay add any 'overtime' to Additional Hours . The effect will be that Super will only calculate on the Base hourly figure

[DuncanS]

Roslyn,

Have a look at SGR 2009/2 on the ATO Website.

I understand regular overtime is deemed to be OTE.

Hope this helps.

Duncan Smith

Business Advice + Tax

[ronatbas]

@DuncanS 

??? The first line of the table says that Overtime is not OTE, which by implication means that it is not included in super calculations.

[DuncanS]

Ron,

The SGR Ruling before SGR 2009/2 excluded overtime from OTE in all instances.

This was certainly prefarable for employers and payroll people.

SGR 2009/2 states a simple overtime situation is excluded from OTE (I believe this is the line you refer to).

I strongly suggest that all employers and payroll people read SGR 2009/2 carefully in determining whether Super is payable on overtime.

Other references include QC 33757 and QC 33860.

It may be that contact with the ATO is necessary to discuss particular circumstances and how SGR 2009/2 may apply.

Duncan Smith

Business Advice + Tax

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