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Reporting a director fee

grant
grant Member Posts: 2

I have been advised by the ATO that I need to report a monthly director fee as that, and not as ordinary wages. Is there an employee status listed for Closely Held Employees that also does not require leave to accrue

Answers

  • Jean
    Jean Member Posts: 41

    I haven't used the payroll app, but from an accounting perspective, couldn't you set up a payroll item as an "addition", called Directors Fees, and assign it to "gross wages", if no PAYG or Super then No to PAYG, No to Super, I would assign it to a general ledger account too, but you might not have that in the app and so need to.

    This is similar to how I treated Bonus (except it normally attracts super and payg).

  • swakhlu01 .
    swakhlu01 . Member Posts: 475 Payroll App Expert Payroll App Expert

    As suggested by Jean, using custom earnings item is an option for you that y ou can use in the monthly payrun. In any case In Basic Payroll app there is no feature to accrue leave so you can ignore it.

    Follow this "how to video" to create Custom earnings item (approx. half way into the video) -

    https://community.reckon.com/discussion/8030104/settings-menu-how-to-video#latest

  • grant
    grant Member Posts: 2

    Thankyou I will try that :)