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?
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.
Don't miss announcements and important info for Reckon Accounts Hosted
Do you have an idea for a feature in Reckon Accounts Hosted? Let us know here!
