...
At this stage of the pay batch process the system automatically calculates the Goods and Services Tax (GST) that is payable to payees whose earnings are subject to GST. A payee's earnings are subject to GST if the payee is an company contractor (i.e. has a tax type of Company) who is registered for the collection of GST. company Company contractors are deemed to provide a service to the employer by whom they are employed and, therefore, the employer is required to pay GST on their earnings.
...