I am trying to set up overnight allowance as non reporting, what tax tracking do I select?
In Reckon Hosted, I am trying to set up overnight allowance as non reporting, what tax tracking do I select?
Answers
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None.
And thanks for your question
Zappy
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Any Payroll Item that's not reportable needs to be allocated to Tax Tracking category None ☺️
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How do you still get it to appear on payment summary?
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"Not Reportable" specifically means it doesn't appear on the Income Statement (previously "Payroll Summary")
What is the allowance actually covering, how much is it & under what conditions is it paid ?
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The overnight allowance that is non taxable in the Long Distance Transport Award.
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Ah OK … so it's non-TAXABLE, in which case it shouldn't be reported as it's basically being paid for by the employer (by way of a "tax-free" allowance). In that scenario, the employee doesn't claim against it as they're not paying tax on it. If it's on the Income Statement, it will be included as part of taxable income & the employee will end up with a tax shortfall.
(On the other hand, if it's taxable, it's categorised as such & displays on the Income Statement so the employee can then claim against it to offset that tax ☺️)
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ok, so it doesn't have to appear on their payment summary?
thank you.
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Leanne
Its not necessary
And thanks for your question
Zappy
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