Articles

Ezipay Automated Payroll

Get help straight from our team...

Super Guarantee (SG) payments for a Contractor

Payroll Processing

Super Guarantee (SG) payments for a Contractor

Create a process for contractors SG payments, have all SG payments managed in Ezipay

Last updated on 04 Apr, 2022

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.

Did you find this article helpful?
Previous

Salaried Staff in a Pay Run

Next