It is noted here that if your report contractors under STP from 1 July you need to report qualifying earnings and super.
When to pay contractors super under Payday Super | Australian Taxation Office
How do you manage this if the contractor is paid through Accounts Payable and not payroll?
Can you just report the superannuation through STP?
G'day @JanelleK 👋
When you've paid contractors through Accounts Payable in the past, you must have included them in SuperStream. Are you saying you enter their data into your payroll, as a Non-Employee, so you report their payee identity details, no income type, just super liability? And that's how you included them in SuperStream, from the payroll?
Then that is what you will continue to do, except for the following changes due to Payday Super:
You can no longer just report super liability (SL) through STP2, as QE is mandatory to report through STP2 from 1 July 2026.
Alternatively, you can adopt a solution that will enable you to report SuperStream from Accounts Payable or from a manual input form/portal 🤓
Have you spoken to your payroll product provider about how their product may support this new PDS requirement for contractors? What about your super clearing house, do they have a suggestion?
Deanne
Thank you for your reply.
Yes in the past I have recorded their super data only in payroll as it is then processed in the relevant batch for superannuation payments from Xero.
I will touch base with Xero to see what they suggest.
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