super on contractors that computes per Xero rate
On Payroll of Contractors, we are currently unable to use the items to correctly calculate Super for contractors based on the current ATO required rate. (image attached)
Could you please create a new payroll item that calculates Super in the same way as Ordinary Time Earnings while ensuring it is excluded from all other payroll items that are not applicable to contractors? (image attached)
This will help ensure contractor Super is calculated accurately and remains compliant with current ATO requirements.
Thank you for your assistance with this matter.
Menandro dela Vega
shared this idea
Hi Menandro, thanks for sharing this. I just want to clarify how this can currently be handled in Xero.
In Xero Payroll, SGC for non-employee contractors is not automatically calculated, as non-employees cannot be paid regular wages through Xero Payroll. Because of this, you will need to manually calculate the 12% super amount and add it directly to the pay run as a fixed amount. We don't have any plans to change the process for paying contractors via Xero Payroll at this stage.
As you're aware, the ATO requires Qualifying Earnings (QE) to be reported. For non-employees set up in Xero, QE is automatically calculated and reported based on the total super amount processed.
Hope this helps clarify how to process non-employee super in Xero! If you need an extra hand, you can raise a case with our Xero Support specialists. 😊
