Hi there,
I have been going around in circles trying to find an exact answer to my question with no luck so far.
We have a non-executive director who has issued an invoice (under a company name with an ABN) for payment of their director fees (i.e. they will not be paid through our payroll).
Since the director will not be paid via payroll, from my understanding, it is up to the director to withhold their own PAYG and report / pay their own superannuation (under their company's ABN).
However, what I am unsure about is whether we (the company) need to report payment of the director fees (via the issued invoice) through STP? I'm not sure if this is considered a contractor relationship (in which STP wouldn't be reportable) or if it is our responsibility to still report the payment of the directors' fees via STP regardless of how they are paid (i.e. through payroll or through an invoice).
Any assistance would be greatly appreciated!