Directors fees
Kellie Malmberg
Member Posts: 2 Novice Member 
Hello,
What is the best way to set up Directors Fees as a new payroll item? How do you set this up so it records on the PAYG Payment Summary correctly, as the ATO says that this should be shown at Item 2 on your individual Tax Return.
What is the best way to set up Directors Fees as a new payroll item? How do you set this up so it records on the PAYG Payment Summary correctly, as the ATO says that this should be shown at Item 2 on your individual Tax Return.
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Set them up the same way you would for regular salaries - i.e. deduct PAYG, pay sup'n, attract payroll tax etc.
Just allocate them to a separate account line "Directors Fees" so that they are easily identifiable on your P&L1 -
Great, thank you for your help Bruce.0
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Kellie, directors fees are NOT payroll items. For example, are they having PAYG withheld? Are they paying super on these "fees"? Typically these are classed as drawings, not wage and salary income.0
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Yeah, Bruce, are you sure about that?0
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Kevin
Most definitely - PAYGW issue in this link https://www.ato.gov.au/business/business-activity-statements-(bas)/pay-as-you-go-(payg)-withholding/
I should have said- Payroll Tax - yes if Victoria, not sure about other states
- Sup'n - yes unless employee has exemption due to aggregate supn contributions being greater than the concessional limit
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Kevin, Kellie
see my response to Kevin's comment above0 -
Excellent Bruce. I am always wary of giving tax advice on a Reckon Forum. It's not really what its here for.0
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