SG on allowances in Payroll App

mscamp
mscamp Member Posts: 9 Novice Member Novice Member
edited January 2024 in Reckon Payroll

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.

Comments

  • Joseph Li
    Joseph Li Member Posts: 499 Reckoner Reckoner

    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
    mscamp Member Posts: 9 Novice Member Novice Member

    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


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  • Joseph Li
    Joseph Li Member Posts: 499 Reckoner Reckoner

    See following current ATO guidance.

    61301048-625F-4AFE-BDB9-BB588510FC88.png

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

  • mscamp
    mscamp Member Posts: 9 Novice Member Novice Member

    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
    Joseph Li Member Posts: 499 Reckoner Reckoner

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

  • mscamp
    mscamp Member Posts: 9 Novice Member Novice Member

    OK thanks for your comments

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