SG on allowances in Payroll App

mscamp

Hi, I have travel allowance and tool allowance which is payable under the award and I believe is subject to SG , I have noticed SG is not calculated in the allowances section of the app. Should I include these allowances in "earning and leave items" rather than "allowance items"? This is the only way I can get the app to calculate SG.

Joseph Li

Travel allowance and tool allowance are not OTE, therefore no SG attached. Travel allowance and tool allowance are expected to be expensed in full.

mscamp

Thanks Joseph, I know it is confusing , but my reading of the building trades (construction) award in WA is that I need to pay SG on tool and travel allowances - that's what is throwing me out when i enter allowances in the app, it doesn't calculate SG. I just don't want to be caught out not paying the correct SG

Joseph Li

See following current ATO guidance.

Building trades (construction) awards in NSW do not force employer to pay SG on travel allowance.

mscamp

Thanks Joseph-I agree with you and the info you have provided from the ATO. This is also consistent with other general info i have seen on SG from the superannuation companies - the message is SG is not payable.

I think i will need to check with the agency administering this award , and perhaps the ATO. It seems inconsistent with everyone else.

If i have to pay SG, do you agree i need to include it in the earnings section of the app, otherwise I can't see how to calculate the 10% SG? I think I will need to create a separate earnings

Joseph Li

Include allowance as part of ordinary earnings if you have to pay SG on that allowance.

mscamp

OK thanks for your comments