Contractor: witholding tax

Bev13

Hi,

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

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:

https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=ECDTSGET&anchor=ECDTSGET/questions/ECDT#ECDTSGET/questions/ECDT

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.