Question: How do I set up an sub-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. Add a Rule Set in which no rules have been configured (typically named ‘Contractor’). 
  2. Select the Super option on the left hand side and set the SGC percentage to 0%.

Adding an Contractor from the Employee Screen

  1. Add the contractor as a new “employee” and do the following:
    1. Link the employee to the Contractor Rule Set (the one just added) on Pay Tab of the employee form.
    2. Ensure the ‘No Tax’ category is selected Pay Tab.
    3. Ensure the contractor ABN has been entered into the ABN field (this is required for the correct printing of recipient generated tax invoices)
    4. Go to the Employee Setup screen and select Departments Tab (each employee must be assigned a default department).
      NOTE: In some instances it may be desirable to create a separate department for contractors.

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 Manager and ensure that none of the current template Allowance Sets has an allowance called ‘GST on Fees’
  2. If this allowance is not available then add a new Allowance Set or modify a current Allowance Set.
  3. Press the Add button, adding a Normal allowance.
    1. Set the Process As field to Reimbursement (GST Only) 
    2. The PAYG location to None.  
    3. Set the amount to Percentage of wage and enter 10.00%.
  4. Save the Allowance Set, 
  5. Then select the Allowance Set now displayed in the Allowance Manager and press Apply.   
  6. Select the contractor, press Apply and close the Allowance Manager.



Adding Time Sheets for Contractors

  1. Enter or edit time sheets for which the contractor is to be paid.
  2. A single entry with the total number of hours worked per day can be entered in a contractor's time sheet. Alternatively, contractors may also clock on and off where records of start and end times are required.



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 contractors 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).