Mobile Phone Allowance

Barbara Allen-Guthrie

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?

Acctd4

@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

Barbara Allen-Guthrie

https://community.reckon.com/discussion/comment/20637382#Comment_20637382

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

Sorry Shaz RA what is that?

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

Acctd4

Apologies for the confusion … “RA” is just short for “Reckon Accounts” 😬