Payroll: Contractor set up with GST payment (NZ)

Yes please!  I think with the changes to payments being made to contractors this is going to be an issue for many more people.  I really can't get my head around how to set it up.  MYOB payroll suggested doing the gst as a "taxable allowance" (which I think they must've meant non taxable otherwise wouldn't it then have paye taken off it creating a nightmare?).

This gst payment wouldn't show up in my gst report  so I would then have to remember to manually look for the gst payments made thru the payroll system.  

Any ideas anyone on how to make this work smarter?

Much appreciated, Pam

I have found a way to make this work in MYOB.

I put thru the contracors payments in Payroll, ignoring the gst.

Then I make a 'Spend Money' entry as if I am paying the contractor with gst for the whole amount (this picks up the gst for your return)

and in the same entry (next line) I minus the contractor amount, but this time with an 'exempt' gst, so it cancels out the contractor gross amount and just leaves the gst amount as having been paid. Then reconcile your bank payment to contractor- include the payroll payment and the 'cash' gst payment - Wolaa, Payroll is correct, gst is picked up and bank reconciles.

Thank you for the idea. Unfortunately, this request has had little support from the community since it was submitted, so we are moving this idea to the Archived status. For more information on Idea Statuses, please read this article: Changes to our Idea Exchange pages

how is this not already a thing. I am trying to do it as a non-taxable allowance, but payroll wont even let me do a percentage to add GSt of 15%.

Kellynz - I agree! Am still waiting for MYOB to incorporate this, but they say there is no demand for it..... well we demand it!