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Single Touch Payroll and Contractor Super

Partner MelWca
2 Posts
Partner
Australia
MelWca
Partner

2Posts

0Kudos

0Solutions

Single Touch Payroll and Contractor Super

Hi,

 

We are recording super for a contractor through payroll to enable the super to be paid through super stream.

 

I have looked through the community forum and found lots of information on this, however they were all before the introduction of STP.

 

Is the contractor super information reported to the ATO through STP and is this OK?

 

Thanks

2 REPLIES
Valued User sholt73
455 Posts
Valued User
Australia
sholt73
Valued User

455Posts

268Kudos

16Solutions

Re: Single Touch Payroll and Contractor Super

I read this article by the ATO that could be helpful to answering this: https://www.ato.gov.au/Business/Super-for-employers/Working-out-if-you-have-to-pay-super/Contractors...

 

basically to copy a line from it: Contractors paid mainly for their labour are employees for superannuation guarantee purposes.

 

considering they'd be considered an employee, I'd say they'd be covered when reporting via STP. in the end, contractor super needs to be processed as an employee in myob for use in SuperStream, that hasn't changed and it seems STP doesn't change this either. but I'd recommend speaking with the ATO if you want more info on that as they'd be the deciders, not myob.

MYOB Staff Post GouriM
8 Posts
MYOB Staff Post
Australia
GouriM
MYOB Staff Post

8Posts

11Kudos

3Solutions

Re: Single Touch Payroll and Contractor Super

Hi MelWCa,

 Thanks you for posting this MYOB Community Forum.

 There is a way you can pay Super to Subcontractors without sending the pay details to ATO .

 Please  check the below steps 

• Create an Employee Card for the contractor.
• Set the Employment Basis to Labour Hire.
• Zero out all figures in the Standard Pay
• Use the Bonus/Commission frequency when processing Payroll to enter in a Void Paycheque for the contractor and manually fill in the amount against the Superannuation Guarantee.

 Hope this helps .

 Thanks 

GouriM

MYOB Payroll Support

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