Payroll - Withholding an allowance

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  • Updated 3 weeks ago
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Is it possible to withhold an employee's allowance and pay it out once it accumulates more?

Eg: Tool allowance for an apprentice is $31.54 a week. It has been paid weekly and after 6 months, the apprentice hasn't purchased any tools. The employee has agreed for the money to be "withheld" until it accumulates to a decent amount for him to purchase tools.

How could it be shown to be accumulating?

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Maria

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Posted 3 weeks ago

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Charles van Rotterdam

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Create a new liability account called "Joe Bloggs Tool allowance" create a new deduction for the tool allowance amount and point it to the liability account and let it accumulate. That way you have paid the allowance and deducted it at the same time.


When it comes time to pay him the allowance it's probably best to do it through payroll
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Maria

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Thanks for the suggestion Charles. I'll look into it.