Tax free car allowance

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Viviana Diaz
Viviana Diaz Member Posts: 1
edited February 2017 in Reckon Accounts (Desktop)
Hi,

We use Reckon Accounts Pro 2014 and need to allocate an un taxed car allowance to an employee.  How do I go about in creating this?   Your help in this matter is very much appreciated.

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  • Kevin Silberberg
    Kevin Silberberg Member Posts: 50
    edited July 2015
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    If you are paying the car allowance and do not want to include the payment as a taxable payment to an employee, journal the payment: Credit Bank Account the amount of the payment and Debit an Expense Account (Car Allowance) the same amount.
  • Sally McIntosh, Accredited Consultant
    Sally McIntosh, Accredited Consultant Accredited Partner Posts: 468 Accredited Partner Accredited Partner
    edited February 2017
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    Hi Viviana,

    If you would like this to appear on their payslip though for record keeping, you can create a new payroll item in the payroll item list (lists drop down menu).

    When you get to the screen about tax you would just not tick the PAYG tax area so it does not withhold tax.

    You need to look into whether it should appear on Payment Summaries, subject to State Payroll Tax, etc.

    Kind regards,

    Sally McIntosh (Sally@samsolutions.com.au)