How To Pay A Contractor

Who: This process is for the Office Administrator to complete

What: It shows you how to pay contractors in Smartly

When: Undertake this process when you have checked that the invoice matches the hours tracked in Harvest and it is now time to pay the contractor

Why: This process is completed as and when is required (refer to individual contractor agreements for timing)

Note: The processes below are no longer used by Strictly Savvy as all contractors now send either a weekly or monthly invoice to us, which is paid to them from Xero, not through Smartly. This however, can be used as a reference if any clients need to pay a contractor through SmartPayroll.

NOTE: Before you complete this process, you must have followed the process to check the invoice against the hours tracked in Harvest. Refer to How To Check A Contractor Invoice.

CONTENTS

1. Invoicing from company (GST registered)

2. Invoicing as individual (GST registered)

3. Invoicing as individual (GST registered AND withholding tax payments)

4. Invoicing as individual (NOT GST registered AND withholding tax payments)

5. Invoicing as individual (NOT GST registered AND would like to pay withholding tax themselves)

1. Invoicing from company (GST registered)

If the contractor is invoicing:

• From a company that is GST registered

Process:

• Process their invoice as you would a normal bill in Xero

2. Invoicing as individual (GST registered)

If the contractor is invoicing:

• As an individual

• Is GST registered

Process:

3. Invoicing as individual (GST registered AND withholding tax payments)

If the contractor is invoicing:

• As an individual

• Is GST registered

• Would like us to pay withholding tax for them

Process:

1. Open Smartly and login

2. Select Run a Pay to open the Pay Run List page

3. From the Pay Run List page, double-click on the contractor's name listed under Normal Pay Details

4. The Normal pay details for [insert employee name] page will now be displayed. This is a sub-page of the Pay Details tab

5. In the Allowances section > under Normal Pay > in the Contractors Invoice (Taxable) row, select the pencil on the right-hand side

6. In the Quantity field, type in '1'

8. Select Ok when you are done

9. In the Allowances section > under Normal Pay > in the GST (Non Taxable) row, select the pencil on the right-hand side

This will open the Edit allowance for [insert contractor name] window

10. In the field, type in the GST EXCLUSIVE TOTAL from the contractor's invoice

11. Select Ok when you are done

12. Select Save

13. The Gross Pay field should match the total of the contractor's invoice (INCLUDING GST)

4. Invoicing as individual (NOT GST registered AND withholding tax payments)

Use this process if the contractor is invoicing:

• As an individual

• Is NOT GST registered

• Would like us to pay withholding tax for them

Process:

1. Open Smartly and login

2. Select Run a Pay to open the Pay Run List page

3. From the Pay Run List page, double-click on the contractor's name listed under Normal Pay Details

4. The Normal pay details for [insert employee name] page will now be displayed. This is a sub-page of the Pay Details tab

5. In the Allowances section > under Normal Pay > in the Contractors Invoice (Taxable) row, select the pencil on the right-hand side

This will open the Edit allowance for [insert contractor name] window

6. In the Quantity field, type in '1'

7. In the Rate field type in the total of the contractor's invoice

8. Select Ok when you are done

9. Select Save

5. Invoicing as individual (NOT GST registered AND would like to pay withholding tax themselves)

If the contractor is invoicing:

• As an individual

• IS NOT GST registered

• Would like to pay withholding tax themselves

Process:

• Process the invoice as a normal bill in Xero