Contractor elgibile for super: Should i put on payroll or pay and super separately?

I have a contractor with an ABN who is engaged principally for their labour, so I'm paying Super Guarantee.

For convenience, I've set them up as an employee in Xero Payroll so I can pay their fees and super together (which requires their TFN as well).

Will Xero report those payments through STP as employee wages? If so, is that the wrong way to handle a contractor who is only an employee for super purposes?

Should I be setting them up as a supplier and paying super separately instead? Which seems more annoying but at least the income is reported to ATO?

TLDR; it seems much easier to use payroll to pay contractor along with their super but I don't want it to bite me in the future