Partner Zone
Partner Zone

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

4 REPLIES 4
Super User sholt73
917 Posts
Super User
Australia
sholt73
Super User

917Posts

555Kudos

44Solutions

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,

 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 .

 Thanks 

GouriM

MYOB Payroll Support

 

*Updated by @Steven_M  to provide updated information

Partner Yoshiko
7 Posts
Partner
Australia
Yoshiko
Partner

7Posts

0Kudos

0Solutions

Re: Single Touch Payroll and Contractor Super

Hi Gouri,

 

Do you mean contractor's SG payments do not need to include STP?

 

Regards,

Yoshi

 

MYOB Moderator Steven_M
31,019 Posts
MYOB Moderator
New Zealand
Steven_M
MYOB Moderator

31019Posts

3921Kudos

4518Solutions

Re: Single Touch Payroll and Contractor Super

Hi @Yoshiko 

 

@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.

Kind regards,
Steven

MYOB Community Support

Online Help| Forum Search| my.MYOB| Download Page

Did my answer help?

Mark it as a SolutionHelpful? Leave a to tell others

Didn't find your answer here?
Try using advanced search to find a post more easily Advanced Search
or
Get the conversation started and make a new post Start a Post