How do I process a Payroll deduction Net Amount (No Tax) for employees personal FUEL expenses

I need to deduct an employees pay for Fuel purchase made on our Company Fuel Card while he was on Annual Leave. How to I process this in Reckon Accounts Hosted Premium.
Would appreciate some guidance please.

Comments

Sue Atkinson

What I would do (and have done) is process the pay as normal putting the fuel amount through as an employee advance payment to reduce his pay by the amount - no tax implication. The fuel amount from the statement would need to be processed to Employee advances account too to balance off and reconcile.

Hope this helps

Suzanne Fontaine

Thank you for your reply Sue, I must be having a blonde moment or a Friday afternoon brain overload, because I don't get it. Thanks again. I will give it some more thought. Sue

Sally McIntosh, Accredited Consultant

Hi Suzanne,

What Sue is saying is when you put the original purchase in the system allocate it to an employee loan account (or whichever wording you like) and this would be an asset account as it's money coming in.

Then in the payroll if you set up a deduction payroll item (lists drop down menu, payroll item list) and allocate it to the asset account mentioned previously and ensure the PAYG tax box is not ticked and part of net pay, etc. Then when processing the pay if you use this new payroll item with the amount it will take it out of his pay.

If you need a remote appointment to help you please let me know.

Kind regards,

Sally McIntosh (sally@samsolutions.com.au)

Suzanne Fontaine

Thank you for your time and replies, I will give it a try. Appreciate your help very much.
Sue

TamNguyen

Hi Sally,
I have a similar situation. We have an employee working for us and she is also boarding with us too. So we pay her for example her a gross amount of $700 dollars, and deduct $120 for housing from her pay (including 3 meals/day). So every week we pay her $580 to her bank account.
So first I have to create an asset account call Boarding? Why is it not income account? I thought that is what we earn from her? but again if we make it an income account then where is the money coming in? Because there is only $580 coming out as wage expense. Could you explain this for me a bit more.

Also then here is the process I do to set up that boarding deduction

I feel like I did it wrong at the Agency for employee liability where I put liability account as the bank account. Because after this every time I do payroll for this employee the amount $125 appear as expense in the bank statement which is totally wrong. I also unchecked PAYG tax as you said. I should I tick calculate base on quantity or Neither?

Thank you so much.