Accruals

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Should I include child support payments in my monthly accruals? My predecessor did not include, and curious if there is a reason why you shouldn't. Thank you.

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  • Acctd4
    Acctd4 Accredited Partner Posts: 3,465 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2023
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    The Gross Wages (incl PAYG) is what the employer has paid & is included in the financials (Profit & Loss). Child Support - whilst usually calculated on gross - is a net deduction (after tax) so is not an additional “expense” to the employer.

    HOWEVER, it is still a liability - that the employer owes (for on-payment to Services Australia) - so yes, it should be shown in the financials (on the Balance Sheet) ☺️

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • amber_10865555
    amber_10865555 Member Posts: 10
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    @shaz thank you for your reply, much appreciated.

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,465 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    You’re very welcome Amber ☺️

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)