Completing the Contractor Tax Details (Gross Pay Country)

Contractor tax details apply to payees who are independent contractors who have their own business. This section requires completion if the payee tax type is Contractor. The tax details of such payees can be viewed and updated in the Portal > Pay > Payee > Payee Maintenance > Payee Entry > Contractor Tax Details section.

The contractor tax details must be recorded on the payee record before the payee record can be saved.
Once defined, a payee's contractor tax details can be modified if necessary so long as the payee is not currently included in an open pay batch.
However, once the payee has been paid (included in a closed pay batch) their contractor tax details, with the exception of their business address details, are locked down for the corresponding payee details validity period and cannot be modified for that period. If you need to modify a payee's contractor tax details after the payee has been paid in one or more pay batches, you must create a new payee details validity period.

How to Record the Contractor Tax Details

To record a payee's contractor tax details, follow the procedure below.

How to Record the Contractor Tax Details
1.	If you do not have the relevant payee record open on in the Payee Entry screen, use the Payroll > Payee screen to search for and open the relevant payee record.
2.	In the Payee Details section of the Payee Entry screen, scroll down the page to the Contractor Tax Details section. The Contractor Tax Details section is available only if the payee has a tax type of Contractor.
3.	If the payee's payee type is Contractor, in the Company Name field, key in the name of the payee's company.
4.	In the Business Name/Trading Name field, key in the registered trading name under which the payee's company operates. This may be the same as the company name.
5.	If the payee is Tax registered , click Tax Registered and key in the payee's Tax registration number, if known or required. When checking the Tax Registered checkbox, this will then activate the calculation of Tax in the pay batch. The label of this field will reflect the label stored in Country Settings > GST Label, so that it references the correct term for the country.
6.	If the payee type is Contractor, enter the payee's business address.
7.	At the top of the Payee Entry screen, click save. A confirmation message displays to indicate that the payee has been saved successfully.