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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?
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.
February - last edited May by Steven_M
Thank you for posting this in 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 OTHER
• 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 .
MYOB Payroll Support
*Updated by @Steven_M to provide updated information
Do you mean contractor's SG payments do not need to include STP?
@GouriM's post outlines the process to exclude employees, that may be subcontractors, from needing to be reported on for payroll reporting but still allow you to process pays (for superannuation reasons).
If you do need further clarification on whether or not a subcontractor should be reported I would recommend redirecting your enquiry to the ATO who would be able to clarify that situation for you.