Allowance set ups

Saz02h

I want to set up the following allowance. can you please advise what allowance type and sub type to use and any description needed. it is not reported to ATO

Allowance – meals and incidentals – domestic, amount does not exceed ATO reasonable amount.

klaura

Hi 727019,

I suggest reaching out to your accountant as to what type of allowance or benefit you should use. You can also seek professional advised from one of our partners here Accountant, Bookkeeper & Advisors Directory | Reckon

Best regards,

Karren

klaura

HI Saz02h,

You can follow the KB we have in the Help site.

Preparing Allowances for Single Touch Payroll Phase 2 - Payroll Web - Reckon Help and Support Centre

Each item you create has an option to show this allowance for STP or not to show.

I hope it helps.

Best regards,

Karren

Saz02h

thanks i understand it is not reportable and we uncheck those boxes in the program, but what allowance type do i call it when putting in the new allowance into reckon payroll?

or does it not matter?

727019

Hi I also need to set this up but the advice I have been given (not from Reckon) is that it should not be set up at a Earnings Type not an allowance as it is just so it can be paid through payroll and shown on the payslip. Is there another way to set this up? Thanks,

klaura

Hi Saz02h,

You can find out what type of allowance to use by visiting this website.

Allowances | Australian Taxation Office (ato.gov.au)

You may also seek professional advise from your accountant or consult one of our partners.

Accountant, Bookkeeper & Advisors Directory | Reckon

Best regards,

Karren

727019

Hi Karren,

The Allowance is - Allowance - accommodation - domestic, amount does not exceed ATO reasonable amount

it is not taxable, not reportable and no super

The requirement to show on the employee's payslip comes from Fairwork

As advised I have had professional advice that this should not be set up as an Earnings type nor as an allowance hence the question.

Thanks, Bernadette

727019

Would setting it up as a reimbursement work eventhough it is not strictly a reimbursement?

Saz02h

so for the allowance type do you use

domestic or overseas travel allowances and overseas accommodation

as one of the pre set allowance types then put my description etc?

Or do i need to create a whole new allowance type? (how do you do that?)

the allowance i am creating is " Allowance – meals and incidentals – domestic, amount does not exceed ATO reasonable amount"

klaura

Hi Saz02h,

Yes, choose the type of allowance from the pre-set allowances and type in the name of the allowance. You can use any name you like for this.

Best regards,

Karren

Rav

Hi folks

As much as we'd like to, we can't advise on how to setup particular items. Advice of this nature should come from a certified professional such as your accountant or even a Reckon Accredited Partner.

This is not compliance advice, from a product perspective in Reckon Payroll;

• If an allowance has the option, Tax applicable set to tax free then the value will not be reported to the ATO.
• If Show as allowance for STP is unticked, the value is reported under Gross.
• If Reimbursement is used (post tax allowance), the value will not be reported to the ATO.