In MYOB Payroll, what should I choose as the Employment Basis?

When you set up a new employee, you can choose between selecting either Individual or Labour Hire as the Employment Basis (you find this setting under the Payroll Details tab, in the employee’s Personal Details).

For most employees, Individual is the correct choice. However, if you have subcontractors for whom you have to pay superannuation or deduct PAYG tax, or if you want to record subcontractor hours using the Time Billing command centre, then Labour Hire is the way to go. Labour Hire is also the correct setting for sales reps you work on a commission-only basis.

By the way, the main difference between Labour Hire and Individual is that only employees with Individual as their Employment Basis appear on your payment summaries.

The contents from this page are taken from Making the Most of MYOB Payroll, 2nd edition, by Veechi Curtis, available online for only $19.95

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