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.
- Before Finalise Pay Run you need to adjust the SG for each employee