Hi guys, I should probably contact the ATO about this but I'm a bit confused, I've been hiring some people to clean for us and they have their own ABN, if they are registered for GST, should their "pay slip" (through MYOB) include GST? I'm not registered for GST at this stage.
EDIT: I run a cleaning business. To clear any confusion about "hiring cleaners", they're subcontractors I guess.
yep if they are registered they need to show GST on the invoice.
I had to take any mention of GST off my invoices after I de-registered from voluntary reporting.
….. and I just got back $800 GST credits that I was in credit, which was a nice suprise!
You would use the GNR (GST non registered) for all your income and expenses in MYOB.
Say the contractor invoices you $110 including GST. The full $110 will be an expense to you (as opposed to a GST registered business who would recognise $100 subbie expense and a $10 GST input receivable from the ATO).
If you mean "pay slip"
a) as in a remittance advice no you don't have to detail GST separately on this
b) If you are talking about payroll pay slip then be careful, generally you should be entering them through accounts payable instead
c) if you are creating their tax invoice to you for them (ie Recipient Created Tax Invoice) then yes you need to detail GST separately on this but you can't issue these if you aren't GST registered yourself
Plus I believe your income needs to be above a certain threshold to create RCTIs.
You should contact the ATO or an accountant. Depending on your turnover, you may be required to register for GST - and you really should if you have contractors. If they will be charging you GST, you should be charging it to your customers. I cannot help you regarding the values inside MYOB as I don't use that specific software. You might also want to read on the ATO site about identifying Contractors vs Employees - it's not as straightforward as one might imagine.