GST on Service Fee for non-standard RCTI
Help! We are a small business. We have a locum who has changed their contract after STP2 to be a (non-standard) RCTI. We agreed to an arrangement which apparently happens at their other place of employment.
We do a Word RCTI and just put the final amount in to Reckon Accounts Desktop with a Cheque.
This is how it works:
1. Locum earnings for business $XX
2. Less a percentage Service fee for business providing staff, equipment and materials $YY
3. Less GST on Service fee 10%
4. Final amount due to be paid is a Cheque to the locum
Earnings = $100
Service Fee = $60
GST on Service Fee = $6
Locum payment = $100 - $60 - $6 = $34
We unfortunately did not think this through.
BAS is now due and we cannot work out how to get the GST into the system.
For all payments the Locum’s Cheque has been written to match off against the bank download.
We have read all the articles on RCTI/Reckon issues. None seem to be in this situation where we create an RCTI and have GST on a Service Fee that we pay to the ATO – this needs to appear in the BAS.
Any help will be much appreciated.
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