Mobile Phone Allowance

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Hi all,

I pay an employee a $50 per month mobile phone allowance to use their personal mobile for business calls when needed.

I had this in Reckon as an Addition with NO PAYG paid on this.

I have spent hours searching the ATO site and on the phone to them trying to figure out if this is right, or if it should take PAYG on this payment.

Are these Additions lodged along with the STP report or should this be put under Earnings?

Does anyone know?



Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,408 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited July 2023
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    @Barbara Allen-Guthrie This is still classed as an Allowance but should be taxed - It will be taxable in the employee’s tax return & they may not be able to claim against (all of) it 😬

    For STP2, it is mapped to Allowances - Tool Allowances in RA

    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!)
  • Barbara Allen-Guthrie
    Barbara Allen-Guthrie Member Posts: 130 ✭✭
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    Thank you Shaz, it is what I thought but no way could the guy at the ATO advise me of this which is a real worry, I will amend.

    Barb

  • Barbara Allen-Guthrie
    Barbara Allen-Guthrie Member Posts: 130 ✭✭
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    Sorry Shaz RA what is that?

    I don't have any Tool Allowances RA in my Payroll list so will create one.

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,408 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    Apologies for the confusion … “RA” is just short for “Reckon Accounts” 😬

    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!)