Contractor Super:

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Contractor Super: I have an employee who manages some tennis lessons as well and invoices us for the lessons. I am to pay Super on these lessons as Contractor Super. I was advised to amend the Super on the final payslip each quarter but this has resulted in his payment summary showing RESC super which is not quite right. I have now been advised to create a new super item. Does anyone have any advice on how to action this correctly? So Salary is paid weekly but invoices received and paid for Lessons outside payroll, but Super is to be accounted for somehow.
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Carolyn Accounts

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Posted 3 months ago

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Kevin Russell, Accredited Partner

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The reason it is showing up as RESC isbecause that is how you have tagged it in the item. You need to go back and recreate it and this time make sure it is not set up as Salary Sacrifice or Employer additional. Thanks for the question.
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Carolyn Accounts

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On the final payrun for each quarter, I was advised to amend the SG 9.5% manually to include the extra super. But this seems to be creating the RESC amount.  The Super item is set up as SG (not Sal Sac or Additional)
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Charles van Rotterdam

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Make up a new payroll item called 'contractor invoices' or something and tie it to normal super and keep it all in payroll, that way you pay correct super on the full amount and it also does not come up as RESC

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Carolyn Accounts

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Yes, sounds good.  The issue there is the employee gets paid weekly (Salary less PAYG), and then I receive the invoices for lessons once a month on his ABN invoice? This would assist me with the Super, but also increase PAYG. Currently he invoices on his ABN for the lessons Monthly.  Is it possible to just set up a new Payroll Item (Super only) and manually add to the monthly payslip or will this still allocate to RESC?  (That was the advice I received from Acct yesterday) 
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Charles van Rotterdam

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You can set it up that it doesn't take PAYG but does add super