Setting up Industry Allowance, Daily Travel Allowance and Tool Allowance

QTMEC

We are a Electrical Contractor Award MA00025 and we have to show separately we are paying in addition to their pay they get paid the 2 Allowances. Not all employees receive this entitlements

what is the best way to setup these items

Alexis McKeown

Hello @QTMEC ,

The best way of handling this in Hosted is to create separate Allowance payroll items.

Allowance items can easily be categorised as an "Addition"-line item.

To create this, you can do the following:

1. Go to Lists.
2. Select "Payroll Item List".
3. Right-click on the page, and select "New".
4. Select "Addition".
5. Name your Allowance Item (i.e. Industry Allowance").
6. Select a relevant expense account (this will be different per company; you may wish to confirm which account you will use with your accountant/bookkeeper).
7. In "Tax Tracking Type", click on the drop-down, and change it from "Gross Payments" to one of the Allowance types. Please note: Allowances - Other (General) may not show up on STP reporting. Confirm with your accountant or bookkeeper before adding it in.
8. Mark it for relevant taxes.
9. Select "Neither".
10. If it is a global flat rate, enter in the default rate in the top-box. If there is a limit on how much an employee can use this allowance, enter it in the bottom box. If neither is applicable, and it is a flexible rate, then ensure both boxes are left empty. Note: If it is a figure that resets each year, you can check the box to ensure that next FY, the employee's figures will regenerate for use.
11. Finally, mark it for which Super it should be included within.

After this, you can add it to your employee's record in the Payroll and Compensation info area, or add it into payslips directly.

Kind regards,

Alexander McKeown

Reckon Senior Technical Support