PHONE RE-IMBURSEMENT ALLOWANCE SET UP

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Sonya Herbert
Sonya Herbert Member Posts: 96 ✭✭

The previous payroll person has set up the Reimbursement Allowance to employees (once a month) as a PAYROLL item under the "type" as Hourly Wage - not "other" or "allowance" so everytime i pay this item - an hour "wage" goes against their account; I've tried to edit the allowance but it won't allow me to change the PAYROLL TYPE - so will i have to make a complete new Payroll Item - if so, can someone tell how to set it up correctly this time. Thank you.

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  • Acctd4
    Acctd4 Accredited Partner Posts: 3,587 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    Yes, unfortunately you’ll need to create a new Payroll Item & replace it in the employee’s record as the type is only selectable upon initial setup.

    Just to clarify though … is this actually a reimbursement or is it an allowance ?

    The 2 are different as a reimbursement is not assessable income to the employee (so doesn’t affect their gross income, PAYG or super) when an employee is reimbursed for a specific cost (just like if they buy milk for the office & they’re paid back)

    However, an allowance is additional income that may or may not be expendable.

    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 *

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    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

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  • Sonya Herbert
    Sonya Herbert Member Posts: 96 ✭✭
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    it's an allowance towards cost of phone useage each month

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,587 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    @Sonya Herbert

    Create the new Payroll Item as an Allowance, mapped to Allowances - Tool for the STP tax type. Both Taxes should be ticked & Super included ☺️

    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!)