Income Type for a Contractor

Lee_8688889

We have one contractor that we pay super for. To manage recording and tracking the accumulation and payments of super, we set up the contractor as an employee and that has been working well for a few years now.

I went to update information of this person and was prompted to select which Income Type applied to the Contractor. We do not take out PAYG for the contractor so none of those income types are relevant to them.

This prompt of adding Income Type seems to be a recent change in RHosted system. Or is it a recent change in how businesses should process payments for contractors. I did a search on ATO website but couldn't see anything.

Has anyone else had this experience? And what do you do?

Many thanks, Lee

Acctd4

Hi @Lee_8688889

Just tick the box to exclude from STP:

The system prompts for the Income Type (on the Payroll & Compensation tab) & Emp. No. (on the Employment Info tab) as these are both compulsory STP2-specific-field requirements for any new employee (AND when any changes are made on an existing one)

These prompts are automatic defaults but as long as you exclude this contractor from your STP submissions by ticking the checkbox, it won't get sent through.

Therefore, you can enter anything for the Emp. No. & select any option from the Income Type dropdown as these details won't be going anywhere anyway 😊

Lee_8688889

That worked. Thanks Shaz 💫

Acctd4

Good to hear Lee ! 👏🏻👌