If you pay contractors mainly for their labour, they are employees for superannuation guarantee (SG) purposes, and you may need to pay super to a fund for them. You can achieve this using the Ezipay system by following these steps:

  • Add a new Pay Schedule in payroll settings called “Monthly Contractor Super”
    • Set Frequency as Monthly
    • Set Included Employees as None
  • Add a new Employee
    • Set Award to No Award
    • Set Employment Agreement to No employment agreement
    • Set Pay Rate Template to Manually set rates
    • Set Pay Schedule to Monthly Contractor Super (as above)
    • Set Job Title to Contractor
    • Set Leave Allowance Template as No leave allowance template
  • Add a new Pay Run
    • Set Pay schedule to Monthly Contractor Super (as above)
    • Set Pay period ending to month end date applicable to the commencement of this new pay schedule e.g. 31st July
    • Set Date pay run will be paid to the same as the pay period ending as this is the first pay run
    • The Pay period starting date will now be updated to reflect the frequency of the pay schedule. e.g. 1st July
    • Select Create pay run with empty pays
    • The employees assigned to this pay schedule will appear automatically
  • Process the Pay Run
    • Before Finalise Pay Run you need to adjust the SG for each employee
      • Select the Employee by clicking on the employee name
      • From the employee Actions menu select Adjust Super and enter the amount required for the employee
    • Note that no earnings or leave should be present here - just SG
      • If you have leave accruals, Update Employee Leave Allowances set accrual units to 0 and disable the Can Apply For Leave for all categories.