Remote Area Housing Benefits

Larissa_7048652

How do I set up in Reckon Hosted a deduction of $250 per week for Remote Area Housing Benefits please?  I have set it up like Superannuation Salary Sacrifice but the amount deducted is being displayed in the RESC section and it should not appear anywhere on the payment summaries.  
Thanks in advance.

Linda ABC

Check the settings under Tax Tracking type for this payroll item - should it be reducing the gross wages and therefore the tax payable - then you would choose Gross Payments?  

Kwikbooks (Professional Partner)

Hi Larissa

If I am reading this right you are not trying to deduct $250 from the person's wage as an actual deduction, you are trying to allow $250 per week before tax is taken due to remote housing??

If this is the case then under the 'taxes' under the employee setup, enter the $250 under "tax rebate" this should reduce the tax before it is calculated. Tick the box 'exclude from payment summary'

Larissa_7048652

Thanks for your reply Linda.

Larissa_7048652

Thanks for your reply Kwikbooks..  I'll give it a go.

karelfritz

Hi Linda

I have read your response to regarding setting up an remote accommodation allowance for an employee.

Just been confused regarding the set up:

From the Contract: employee is casual and paid $30/Hr plus the employer is giving $400 accommodation allowance then subsequently the employee will pay back the employer the rent via FBT?

Appreciate your response

Thanks

Fritz

Kwikbooks (Professional Partner)

Hi Karelfritz

More info please, is this $400 a living away from home allowance or is this $400 for the employees normal place of residence.

karelfritz

Hi LInda

The contract is this. Employee is paid is Casual at $35/hr plus the employee is provided with accommodation as normal place of residence value $400 per week. Location of the house is remote area. Is this a fringe benefit? What are the exact steps to set up this in reckon? Is my set up below correct?

Appreciate your advise.

Regards

Fritz

Kwikbooks (Professional Partner)

Hi Karelfritz

Accommodation provided to an employee in a remote area may be exempt from FBT.

https://www.ato.gov.au/general/fringe-benefits-tax-(fbt)/in-detail/getting-started/fbt-for-small-business/?page=20#:~:text=a%20fringe%20benefit.-,Housing,house%2C%20flat%20or%20home%20unit

Accommodation considered to be in a remote area

If the accommodation is inaccessible or sparsely populated and is not located close to a built up area such as a town or city it is considered to be in a remote area.

20.1 What is an exempt benefit?

A number of benefits are exempt from FBT. Although these are popularly called 'exempt fringe benefits', they are referred to in the FBT legislation as 'exempt benefits' - in fact, by definition, an exempt benefit can't be a fringe benefit.

Exempt benefits are not only exempt from FBT, they are also (with one exception) exempt from income tax in the hands of the employee to whom they are provided. The exception relates to car expense payments, which is explained in section  20.2 .

https://www.ato.gov.au/law/view/document?DocID=SAV/FBTGEMP/00021&PiT=99991231235958/

I would set up a new allowance called "Rent - remote area", and make it free from PAYG tax, if it is actually in remote area, and add it to his pay each week. Or you could just pay the rent direct to the agent, then you know it isn't spent by employee. Will you be paying the utilities as well?

karelfritz

Hello ABS

Thank you for your helpful advise.

On the other hand.

Can you please advise how to set up a full time employee in

reckon hosted.

 

An employee has an annualised salary contract at 70k computed

including the annual leave loading and first aid allowance with normal 38 hours

a week.

 

Do I need to get the hourly rate so i can also track the annual

leave and sl?

Say 70,0000/52/38 hours? $35.4251/hr

Appreciate you help.

 

Thanks

FritzHi Everyone

Can you please advise how to set up a full time employee in

reckon hosted.

 

An employee has an annualised salary contract at 70k computed

including the annual leave loading and first aid allowance with normal 38 hours

a week.

 

Do I need to get the hourly rate so i can also track the annual

leave and sl?

Say 70,0000/52/38 hours? $35.4251/hr

Appreciate you help.

 

Thanks

Fritz

Kwikbooks (Professional Partner)

Hi Karelfritz

Accommodation considered to be in a remote area overseas

If the accommodation is inaccessible or sparsely populated and is not located close to a built up area such as a town or city it is considered to be in a remote area.

20.1 What is an exempt benefit?

A number of benefits are exempt from FBT. Although these are popularly called 'exempt fringe benefits', they are referred to in the FBT legislation as 'exempt benefits' - in fact, by definition, an exempt benefit can't be a fringe benefit.

Exempt benefits are not only exempt from FBT, they are also (with one exception) exempt from income tax in the hands of the employee to whom they are provided. The exception relates to car expense payments, which is explained in section  20.2 .

https://www.ato.gov.au/law/view/document?DocID=SAV/FBTGEMP/00021&PiT=99991231235958/

Kwikbooks (Professional Partner)

Hi Karelfritz

May need a little more info, do you want to email me Kim@kwikbooks.com.au and I will give you my phone number to call if you prefer.