DIRECTORS SPEND & WAGES

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Comments

  • David ElliottDavid Elliott Member Posts: 25
    edited July 2019
    Michelle, I suggest you research the questions online, including the ATO website.  I believe you will find that:
    "PAYG is required to be withheld from the gross directors fees, reported on the IAS or BAS that is used to report the salary and wages and related PAYG W for that period, and should be remitted to the ATO. Director's fees fall within the definition of Ordinary Times Earnings, and superannuation guarantee applies."
  • OatsOats Member Posts: 72
    edited May 2019
    Hi David, 
    Thanks for the info,  that sounds like what I was thinking.  I will also check ATO.  


  • ZappyZappy Accredited Partner Posts: 4,708 ✭✭✭
    edited May 2019
    David correct Sir
  • Avis LouthAvis Louth Member Posts: 11
    edited July 2019
    Grahame, I notice on your Directs pay example there is leave accruing
    I'm doing a Directors pay for the first time and found your example really helpful.
    Is leave also accrued on Directors pay?
    Thanks Avis
  • ZappyZappy Accredited Partner Posts: 4,708 ✭✭✭
    edited July 2019
    Of course not. Leave only accrues under a contract or an Industrial instrument. For pity's sake
  • accountsaccounts Member Posts: 30
    edited August 2019
    I was not going to coment again after my initial query caused such controversy, but after I read the latest comment from Kevin responding to Avis, I feel I must agree with Kwikbooks who said.."people come to this site for help, not accusations, a lot are totally  new to any of this, and need to be guided in the right direction to the correct way, best practices and reference to the legal requirements if required.". Although I understand Kevin is a long standing and ethical bookkeeper or accountant who tries to elucidate on areas where he is well versed, and who enjoys a robust debate, his comments sometimes border on elitist and dismissive.  I would mainly like to thank Graham for his reply showing a practical example that helped me to negotiate around my problem. I am an employee of a business, as are many on this forum, and as noted, have only as much influence on the running of that business that is allowed by the business owners/directors, so I must use my skills to accommodate what they need for the business whilst advising them on any problems with legality etc. Bookkeepers also look to the business's accountant for guidance as to how they need the books configured as they are doing the taxes etc and to whom we must explain if there are discrepancies or issues. The job of bookkeeping has become much more all-encompassing over time with more bureaucracy, govt reporting, payroll requirements, STP and learning new software, so any help for us all who are basically doing it alone is always welcomed! These days we have to come to forums if we are using any software because there is usually not a decent manual or training other than watching youtube vids, so we spend a lot of time typing in search queries to match our problem. I hope Kevin continues to share his wisdom but tones down his impatience with those who may not have as much experience as he does.
  • ZappyZappy Accredited Partner Posts: 4,708 ✭✭✭
    edited July 2019
    Thanks accounts. I do like to help yes. And I don't see encouraging short cuts as being in that vein. It's easier to get things right once and for all. And any accountant who promotes short cuts usually gives me pause. Just my two penneth.
  • OatsOats Member Posts: 72
    edited July 2019
    Well said accounts,  employees are doing their best to keep their jobs and follow the business owners requests while trying to keep everything correctly treated for tax and accounting standards.    These forums are great because if you purchase Reckon outright and have to pay $4.95/minute is just not acceptable for support.

    I also appreciate the example from Graham of how to process directors wages.  
    Thank you.    
  • Graham BoastGraham Boast Accredited Partner Posts: 406 ✭✭
    edited July 2019
    Two penneth Kevin? I see you have now joined the trend to value pricing.

    Many Directors are also employees in their business; some are even Managing Directors.  Are you really saying that leave does not accrue to an employee if they are a Director? 

    I think your advice in this whole thread has been a little off the mark.  For Pity's sake.....

    Graham
  • ZappyZappy Accredited Partner Posts: 4,708 ✭✭✭
    edited July 2019
    I was very clear that leave would be left up to the contract of employment . It would be most unlikely to be covered by an award or the NES. Whats so hard to understand?
  • David ElliottDavid Elliott Member Posts: 25
    edited July 2019
    Good to see Graham & Kevin are at it again!  Always entertaining.  LOL

    As to leave accruing on a Director's salary, I can't imagine that even a verbal contract of employment would other than implicitly include generally/widely accepted conventional employment terms and conditions for the subject position - which of course includes leave.  If something other than the norm is wanted, then it's time to reduce the verbal contract to writing.

  • ZappyZappy Accredited Partner Posts: 4,708 ✭✭✭
    edited August 2019
    If the position doesn't fall under within ambit of the FWA there is no norm. Of course there should be a contract.
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