Invoicing a Wages Subsidy and corresponding entries

AccountsKD

Hello I am very new to Accounts and Reckon and would appreciate some assistance. We use Reckon Desktop-Accounts Plus 2023.

We need to invoice for a Wage Subsidy. Do I load the provider as a Customer to invoice and use labour for eg, then process a journal from accounts receivable to Wages Subsidy GL, then Wages Subsidy GL to Payroll Expense GL. Or am I completely off track.

Your guidance is greatly appreciated.

Thank you Kerrie

Kris_Williams

if you do an invoice for the wage subsidy you then do a receive payment when it is received, no actual journals required. If the money has already been banked and you are entering it after the fact you can use a Sales Receipt and this banks it at the same time. If this is income it will not go to Payroll Expense but an income account

Acctd4

@AccountsKD I agree with Kris 😊

Depending on what the wage subsidy is, it will likely need to be reported in your G1 BAS income (along with any GST received at 1A) If that's the case, it MUST to be entered on a sales form eg a Sales Receipt - as advised by Kris - so that the correct tax code is picked up as the tax codes are what drive the tax reports for BAS.

You'll need to create a specific Item in your Item List & link this to a new Income account. Feel free to get in touch direct if you need assistance with this 😊

Acctd4

@AccountsKD I've received your email Kerrie.

I'm just out on site all day today but will reply to you tonight when I'm home, with some instructions for you 😊

AccountsKD

Morning Kris and Shaz

Thank you for your information muchly appreciated. We had a young fellow with autism come and do a placement at the Nursery. We are claiming for the Wage Subsidy offered.

There is an account called Wages Subsidy (other income). When I load the sale and allocate the item to Labour (a Service item) it directs the transaction to the undeposited funds. Shaz you mentioned I might need to load a specific item. I am guessing I need this and would need to link the item to the Wages Subsidy account or Payroll Expense account?

Shaz I will take you up on your offer of assistance and contact you direct.

Thanks again for your assistance Kris & Shaz a breath of fresh air..;0)

Kris_Williams

No you link it to the income account and use tax code FRE and where it says undeposited funds on the sales receipt, click on the arrow and change to the bank account

Acctd4

@Kris_Williams These usually include GST so it will likely need to be the GST tax code 😬

Kris_Williams

ok but I have never seen paperwork for the subsidies I’ve had to deal with, and always thought that govt subsidies would be FRE

Acctd4

@Kris_Williams Several are, but it depends on the type so it's important to always check the paperwork.

For instance the "Group Training Organisation" (GTO) subsidies are GST-Free but the JobActive ones - like this one - are not:

https://www.busyatwork.com.au/wp-content/uploads/2021/06/wage_subsides_factsheet_update_oct_20.pdf

😬