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The tax type of Company applies to payees who are engaged by your business as contractors and work under a company ABN or they are supplied by an Umbrella or 3rd Tier Agency. Such payees are not subject to PAYG withholding and therefore are excluded from STP reporting.
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Contractors who are sole traders may have a personal ABN as opposed to a company ABN. Such contractors are required to have tax withheld and should be categorised as LAB payees and not Company contractors. For more information, see PAYG Tax Type above. |
There are no separate payee/income types for payees with a tax type of Company and as such the payee type setting for this type of payee is defaulted to CompanyWhere payees are supplied by a 3rd Tier Agency or an Umbrella company, the payee type needs to be selected to define where the payee is being supplied from. For more information, see Overview of Supplied Payees. The available payee types are:
Company - This is the default payee type for tax type Company and is applied where the contractor is working under their company ABN.
3rd Tier Agency - Where the payee is being supplied from another agency.
Umbrella - Where the payee’s tax affairs are managed by an Umbrella company.