Directors fees

Kellie Malmberg
Kellie Malmberg Member Posts: 2
edited June 2020 in Reckon Accounts (Desktop)
Hello,
What is the best way to set up Directors Fees as a new payroll item? How do you set this up so it records on the PAYG Payment Summary correctly, as the ATO says that this should be shown at Item 2 on your individual Tax Return.

Comments

  • Bruce
    Bruce Member Posts: 439 Professional Partner Professional Partner
    edited June 2020
    Set them up the same way you would for regular salaries - i.e. deduct PAYG, pay sup'n, attract payroll tax etc.
    Just allocate them to a separate account line "Directors Fees" so that they are easily identifiable on your P&L
  • Kellie Malmberg
    Kellie Malmberg Member Posts: 2
    edited May 2020
    Great, thank you for your help Bruce.
  • Bruce
    Bruce Member Posts: 439 Professional Partner Professional Partner
    edited May 2020
    Kevin
    Most definitely - PAYGW issue in this link https://www.ato.gov.au/business/business-activity-statements-(bas)/pay-as-you-go-(payg)-withholding/

    I should have said
    • Payroll Tax - yes if Victoria, not sure about other states
    • Sup'n - yes unless employee has exemption due to aggregate supn contributions being greater than the concessional limit
  • Bruce
    Bruce Member Posts: 439 Professional Partner Professional Partner
    edited May 2020
    Kevin, Kellie
    see my response to Kevin's comment above