Accruals

amber_10865555
amber_10865555 Member Posts: 10 Novice Member Novice Member

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.

Comments

  • Acctd4
    Acctd4 Accredited Partner Posts: 4,208 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert
    edited May 2023

    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) ☺️

  • amber_10865555
    amber_10865555 Member Posts: 10 Novice Member Novice Member

    @shaz thank you for your reply, much appreciated.

  • Acctd4
    Acctd4 Accredited Partner Posts: 4,208 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert

    You’re very welcome Amber ☺️