Where a contractor invoices a business and is paid superannuation, can the invoiced hours be reduced from actual hours worked (e.g. 65 hours worked but only 60 hours invoiced)? If a contractor requests to be paid for fewer hours than actually worked, is the business permitted to process payment on the reduced amount? In this scenario, what is the correct basis for calculating superannuation obligations. Is it the actual hours worked (65 hours) or the invoiced/paid hours (60 hours)?
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G'day @dankapep 👋
Under which circumstances would a contractor not invoice for their services? 🤔
As per the ATO guidance, on the OTE of the labour component of the invoice 😉
Deanne
Hi PayrollDeanne,
Do you mean why would anybody undercut their own hours. I don't know, but the invoice provided adds up to a certain number of hours and there is a note saying only pay xx number of hours. I am inclined to pay the total of hours, but I have in the past had suppliers provide discounts or in-kind hours.
D