New Employee or Contractor
The process is
1. You need to apply for a PAYG withholding number (WPN) at the ATO website in your name here: (you don’t need an ABN number)
2. You may need to confirm if your staff member is Casual or a Contractor in the eyes of the ATO, you can do this here.
Select the “Employee or Contractor decision tool” button and answer the questions. We usually answer “yes” to the question about paying superannuation, which is your choice.
Once you have completed the questions you will be presented with the results similar to the image below, as it suggests it is a good idea to save the results per employee.
(Note – further down the page you can give a name to the result and save. There is a document area in the Ability8 app to save this result per employee.)
3. You should supply the 2 forms (links below) regarding Tax File Number and Superannuation Choice to your staff to complete and sign then return to you.
4. Once you get the forms back from your staff members you populate the Employment Detail section and the Tax & Super Funds sections, using those forms.
If you have done this correctly the tax and superannuation calculations are all done in the app.
5. In the app you will need to set the staff member’s hourly pay rate and superannuation rate if you are going to pay superannuation to them (legally 9.5%)
6. (If paying super) You then need to register yourself on the Small Business Superannuation Clearing House which you register here (link below) and once registered you access though the MyGovt website like the NDIS Portal. This is where you pay the staff superannuation each month or quarter.
Registration and Setup information:
7. Within the ability8 app when you approve and pay each employee’s timesheet their PAYG Tax and Superannuation is automatically calculated and added to the employee’s payslip. When you claim this payment back from the NDIS Portal the claim will include the Tax and Superannuation amount, this is left in your bank account until you pay Tax and Superannuation each quarter. You don’t need to run separate bank accounts, you can just draw from the current NDIS bank account when those monies are due.
Here is a further info regarding NDIS on the ATO website
Hope that helps, remember you only have to do the setup once, once done you don’t have to visit that process again.
Within the Ability8 App you will be notified by email when your payday, Tax and Superannuation is due and it is clearly marked on the calendar in yellow.
Each Pay Cycle
1. Each pay cycle in the app you just process timesheets, make a payment per staff member and claim from NDIS portal.
2. Then make the actual payment to staff member from your NDIS bank account via your own banking portal.
Monthly or Quarterly
Each month or quarter you pay Superannuation and PAYG Tax, which you can confirm the details by running the “Wage Details” report in the “Settings – Reports” section of the ability8 app.
Login to make Superannuation payments, you can access this through the myGov website.
You pay the PAYG Tax instalments (Tax) you have withheld from your staff here.
Again you access this through the myGov website.