How do you set up a tax exempt employee reimbursement, i-e chanisaw allowance in reckon payroll

Hi Tony

If it is a one-off reimbursement or irregular reimbursement for something the employee has bought or paid for, like chainsaw repair on pick up, then the best way is to just transfer that amount to his/her bank account labeling it reimburse xxxx.  This is better as you have the receipt and the bank transaction looks like you have paid it yourself.

If a regular non-taxable allowance like car kilometer reimbursements....Set up new ALLOWANCE payroll item "reimburse Klm" > Tax tracking "allowance-car" (this will show it separate on payment summary as it is reimbursed not earnings)> follow prompts and do not tick PAYG.

Award allowances are set up similar depending on the wording, taxable allowances are set up this way,but are part of gross wages, non-taxable are set up using an allowance item on the payment summary i.e Travel allowance, set amount for being away (gross payments & taxable) - Travel allowance, reimburse actual expenses (Allowance-Travel & non-taxable).