Question: How do I set up a Contractor in ClockOn

Answer:

When you are configuring a Contractor, in ClockOn, there are a number of tasks that need to be completed to process them in the system.

1. Configuring a Rule Set for a Contractor
2. Adding a Contractor from the Employee Screen
3. Configuring GST and Allowances for Contractors
4. Adding Time Sheets for Contractors
5. Payroll for Contractors

Each step is outlined below.

Configuring a Rule Set for a Contractor

1. The first step is to make sure that you have a Rule Set in the system specifically set for these staff members.
   If you do not have one already set up please refer to the Rule Sets Maintenance - Adding/Editing Rule Sets article.
   
   You will need to set the following
   1. Name and Description details accordingly (typically using either Contractor or the individual's name).
   2. The Employee Type needs to be set to Other.
   3. The Select Pay Period needs to match your agreement with the staff member whether it be weekly, fortnightly,4 weekly or monthly.
   4. For contractors typically the pay type is set to Hourly.
      
      
      
2. Next, you will need to confirm the Super settings by selecting the Super option on the left side of the screen.
   Ensure that all of these settings are either 0%, 0, or disabled to ensure that you are not paying the employee
   
   
3. Save the ruleset and proceed to the next step.

Adding a Contractor from the Employee Screen

1. Add the contractor as a New Employee, open the Pay Tab and do the following:
   1. Set the Ruleset dropdown to match the Contractor ruleset previously set up.
   2. Set the Tax Category to No Tax
   3. Set the Gross Pay Type to Voluntary Agreement
      Note that when the Voluntary Agreement option is selected the Include in STP option is available, this is defaulted to off in this instance.
   4. Ensure the contractor ABN has been entered into the ABN field (this is required for the correct printing of recipient generated tax invoices)
      
      

Configuring GST and Allowances for Contractors

Most contractors will require a GST component to be added to their pay structure and on Recipient Generated Tax Invoices. If so then you will need to create an allowance To do this: 

1. Open the Allowance/Deduction Manager
2.  If it doesn't already exist add a new Allowance set and call it 'Contractors'.
3. Edit the allowance set and click the Add button, adding a Normal allowance.
   1. Set the Name to GST on Fees
   2. Set the Process As field to Reimbursement (GST Only) 
   3. The PAYG location to None.  
   4. Set the Amount to Percentage of wage and enter the Value to the GST percentage (10% At the time of writing).
      
      
4. Save the Allowance Set, 
5. Then select the Allowance Set now displayed in the Allowance Manager and press Apply.
    
6. Select the contractors, from the list and then press Apply.
   
   
7. Once completed close the Allowance Manager.

Timesheets for Contractors

Timesheets for contracted staff are treated the same as any normal staff member, they can either be created in advance, retrospectively or the employee can clock them through any available means that the business is currently employing. 

Payroll for Contractors

Basically, you can process the payroll as normal. All settings for the contractor have already been pre-configured. 

Some recommendations before processing contractors in payroll 

1. Ensure you have received the contractor's invoice before processing them.
2. You can process the contractors in their own payroll. 

Note: Do not print a payslip for the contractor. Instead, complete the pay-run, go to reports and print a 'Recipient Generated Tax Invoice'.

Note: The allowance ‘GST on Fees’ only applies to contractors earning over $75,000 (as at October 2012).