Recording government grants in payroll

Kim Merigan

Hi staff members have been awarded a govt grant (due to be included in their next payroll - it is paid driectly to our bank account for us to distribute). This grant is taxable.
Do I capture this amt in "Other payroll items" or is it incorporated under earnings?
we use the desktop version of  Reckon Accounts Premier thanks Kim 

Acctd4

Hi Kim

 

Hmmm, the fact it is to be specifically on-paid to the employees (rather than just a grant to assist the business financially in doing so) I would clarify with the Govt Dept who paid it as to specifically what “type” of payment to employees it represents in order to determine what type of Payroll Item to use.

 

Being taxable, it’s important to record the receipt of it to the business as income (I prefer to use an “Other Income”-type account). 

 

Presumably, no GST is applicable meaning no tax code is required so it can be entered just via Make Deposit but best to confirm as some Grants do include GST & if so, it will need to be entered via a Sales Receipt using an Item that links to the (Other) Income account you set up.

 

 

Shaz Hughes Dip(Fin) ACQ NSW, MICB

Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

Accounted 4 Bookkeeping Services

Ballajura, WA

0422 886 003

shazinoz2@bigpond.com

www.accounted4bs.com

Kim Merigan

ok great thanks so much.
Now part B - when i come to paying the staff via payroll , do I set this amount up in "Other payroll items"
Kim

Acctd4

As stated, I would think this will be very much dependant on the clarification you get from the Govt Dept who paid it as to exactly what it is intended to represent/is for.

 

Shaz Hughes Dip(Fin) ACQ NSW, MICB

Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

Accounted 4 Bookkeeping Services

Ballajura, WA

0422 886 003

shazinoz2@bigpond.com

www.accounted4bs.com

Linda ABC

Are you sure you don't mean JobKeeper payments?  sounds like Job Keeper?  if so you need to follow all the instructions at https://help.reckon.com/article/37pwpj1499

Charley

Kim NO, you create a Class to follow the Grant. The Grant is paid to the Organisation and then you do normal payroll allocating to the same class as the Grant.. That means that the Gross Wage, Super and the Grant's portion of of Workers Comp will be included. Depending on the Funding Agreement the Organisation might also be allowed to take an Admin fee. You need to properly read the Funding Agreement. It might also be Jobkeeper which comes under different rules see Linda Putland's below

Kim Merigan

no thanks anyway, already got that sorted!
this was a special grant for our nurses working in aged care

Kim Merigan

ok great thank you