Reporting a director fee

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


  • Jean_10862158
    Jean_10862158 Member Posts: 47

    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: 485 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) -

  • grant_10862327
    grant_10862327 Member Posts: 2

    Thankyou I will try that :)