Home

 

Setting up a GST Contractor

Introduction

To setup the infrastructure to manage sub-contractors as employees in providing services.

Getting There:

[ SC ] –> Payroll / Parameters / Employment Types

Top of Page

Introduction

Outcome:  Demonstrate how to create an “Employment Type” that will allow a loading calculation.
Explain how to set an “Allowance Code” to add 10% before tax.
When you employ contractors and demonstrate how to add a penalty to create GST.

  • Create an Employment Type
  • Create an Award Code
  • Create an Award Interpreter Record
  • Create an Allowance Code
  • Create a Classification Code
  • Testing

Top of Page

Creating an employment type

pf_contractor
Contractor 2. Create an “Employment Type” code and description for the contractor
A.      Make sure you indicate that it is for GST
3. Complete “Hours/Week”, “Hours P/A” and “FTE” as indicated above.
4. You must check the “Loadings” box to allow the “GST” to be calculated
Contractor 5. Click Save

Top of Page

Create an Award Code

1. Open “Time Scheduling / Award Codes” from the “System Codes” Menu

pf_contractor Contractor
2. Create a code and description for a “Contractor (GST)”
3. Click Save

Top of Page

Create an Award Interpreter Record

This is used to define that normal pay and the GST, as defined above, are paid each day.
1. Open “Time Scheduling / Award Interpreter” from the “System Codes” menu

pf_contractor

Top of Page

See Also

2. Enter a code and Description
3. Complete the award rule band by selecting
N – Normal Pay
    and
GST – That you just created in the award codes
For each day
4. Setup overtime as desired
5. Click Save

Top of Page

Create an Allowance Code

This item will setup an allowance (addition before tax) of 10% to cover the GST
1. Open “Payroll / Earning Codes / Allowance Codes” from the “System Codes” menu
pf_contractor

Top of Page

See Also

2. Enter an “Allowance Code” to indicate GST
3. Select an “Allowance Deduction Type” of “Addition Before Tax”
A.      This makes the “Allowance” an addition to normal pay before tax
4. Set the “Description” to indicate GST
5. Select “Percentage” as the “Method”
A.      This is because GST is a percentage
6. Set “Amount/Factor” to 10
A.      This is because GST is an additional 10%
7. Select “Gross Earnings” in “Group Certificate Box”
8. If using the General Ledger select the appropriate “Cost Centre”
9. Click Save

Top of Page

Create a Classification Code

This allows you to define an “Employee Classification”, to be used for contractors that will pay GST by treating it as a penalty rate.
1. Open “Payroll / Classification Codes” from the “System Codes” menu
pf_contractor

Top of Page

See Also

2. Create a new “Classification”
A.      Enter a code for the GST contractor in the “Position” field
B.      Select the “Effective Date”
C.      Enter a description
3. Select the “Award Rule” you created in the “Award Interpreter”
4. “Calculation Method” is normally set to “Hours” as you pay by the hour
5. Setup the rates as desired
A.      Click the “Rates” tab
B.      Complete values as desired
6. Setup penalties to pay GST
A.      Click the “Penalties” tab

pf_contractor

Top of Page

See Also

B.      Check “Pay” “Public Holiday” and “Overtime” if appropriate
C.      Double click an empty cell under “Allowance”
1)      Select the “Allowance” you previously created see “Create an Allowance Code” on page 52.
D.      Tab to “Amount” and enter 10 for the 10% GST
E.      Double Click under “Link”
1)  Select the GST award code
2)  This links the penalty to the GST award code used in the “Award Interpreter”
7. Click Save

Testing

1. Open “Scheduling / Time Scheduling Workbench” from the “Navigator
2. Assign a shift to a contractor
3. Double click the shift
4. Check the “Pay Tab” in the “Booking” window for the rate and classification
5. Go to the Cost Tab
A.      There should be a GST line under normal hours.
B.      If the shift was already assigned
1)  Double click the hours and another line should appear with the GST the amount.

Top of Page

See Also