We have a supplier who does contract work for us and we must pay his superannuation. How do I set up his super to use Reckon 2014 Super ?

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We have a supplier who does contract work for us on a regular basis and thus we must pay him superannuation. How do I set up his super to take advantage of the Reckon 2014 Super update?
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Jennifer

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Posted 5 years ago

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Kevin Russell, Accredited Partner

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Simple answer. You cannot. I use payroll for my contractors for just this reason. Of course it's not perfect but it works
if you are obliged to pay super for him, as i guess you have been advised by your tax agent or ATO, then might as well pay wages in this case as an employee , and more than likely , you have to pay his workers comp too.  You must take proper advise from your Tax agent first, in all theses
cases. If you have  still problems , please let us know. 
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Kevin Russell, Accredited Partner

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John P says you shouldn't that the tax office might deem the contractor an employee. I find this extremely difficult to believe the only possible glitch will be is if you need to report tpar. Otherwise I say go to it. Be careful of the gst. I just use a pay item.
Sorry, not very clear with John P, but what ever, please ensure take written advise , we have been caught with these kind of situation , with ATO, had to engage Tax LAWYERS, this forum is not the place to discuss on tax matters.
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Jennifer

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Have not seen the reply from John P but thanks for your replies - have made it a lot clearer for me
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Kevin Russell, Accredited Partner

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Chandra it's irrelevant as I stated. Jennifer why don't you inquire of your accountant / bas agent? What is that, you don't have one? It's what I do
Its not irrelevant, Kevin, in these matters the client first must take advise from their Tax Accountant/ Tax Agent. Cannot say any more on this, There are certain obligations between the appointed Tax Agent and the client.
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Kevin Russell, Accredited Partner

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Chandra with the most humble and sincere respect, I disagree. This is NOT a tax matter.
Kevin , I will call you on this matter and explain , not the forum.
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Andrew Hellier, Employee

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Happy Friday All.

There is obviously a difference in opinion here. Let’s just leave it to the OP to contact their accountant for direct advice.

Have a good weekend.

Cheers,
Andrew

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