PHONE RE-IMBURSEMENT ALLOWANCE SET UP

Sonya Herbert

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.

Acctd4

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.