lafha Living Away From Home Allowance

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Problem with configuring an allowance (in this case Living Away From Home Allowance).  We have configured so that the allowance is deducted before any tax, which is correct.  However when we produce the PAYG Payment Summary the Gross Payments value is recorded incorrectly as the amount before the deductions even though the tax is deducted after the deductions, and this number should be the value for Gross Payments.  HELP.  Reckon it cant be done.  I say rubbish as there must be other companies that have overcome this problem.  HELP  we are using Reckon Enterprise
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Phil from Berwick

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Posted 3 years ago

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John G, Information Support Analyst

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Hello Phil,

Welcome to the Reckon Community.

Here is my resulting PAYG Summaries from my tests:

LAFTA as an allowance (in addition to salary)
Employee is earning $1000.00 per week with a tax free LAFHA of $100.00pw.
LAFHA is setup as an Allowance (Type: Addition) with a Tax Tracking Type of Allowances and Taxes unticked.  

LAFTA as a deduction from a Salary Package

Employee has a salary package of $1000.00 per week which includes a tax free LAFHA of $100.00pw.  LAFHA is setup as a Deduction with a Tax Tracking Type of Deductions (Union fees,...) and Taxes ticked.  An Addition Payroll item is created to pay the allowance, with Tax tracking Type of None and Taxes unticked.  Both the Deduction and Addition are charged to the same payroll Expenses account.  

Hope this helps.

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Phil from Berwick

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Thanks John