Contractor: witholding tax

Bev13 Member Posts: 10


If a contractor wants us to withhold tax from her invoices and submit it to the ATO with the monthly BAS, how do I record this in Reckon Hosted? Is there a particular tax code to use?


  • Acctd4
    Acctd4 Accredited Partner Posts: 3,175 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2022

    The Supplier Centre & Employee Centre are both separate, unrelated areas. Supplier transactions use GST tax codes, payroll transactions use a completely different set of tax table tax codes.

    Is this contractor deemed an employee by the ATO ? Use the ATO's Tool to determine this & whether you should also be paying Super for them:

    If they are deemed an Employee Contractor, I would set them up in Payroll; just for the purpose of PAYGW & Super NOTE: They are NOT included in STP reporting!

    If they are a genuine, independent Contractor, you can add the PAYGW Liability account on the subsequent line to deduct the applicable PAYG on each Bill/Chq. The integrated BAS picks up this account so should report not only on Payroll PAYGW, but also any use of the account itself in transactions.

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner(AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    [email protected]

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)