Allowances are additional payments that are given to employees, typically, to reimburse them for a work-related cost. Allowances that are given to employees can be predefined on the system to facilitate their inclusion on a timesheet. An example of an allowance would be if the employee used their own vehicle for work related activities and were entitled to a motor vehicle allowance.
1. Select a menu path of Maintenance Ø Allowance.
2. To create a new code, select the ‘New’ button and enter the details.
3. When completed press the OK button. The refreshed Allowance listing window will be displayed.
4. Allowances that are reportable are passed to the Single Touch Payroll file, see below for explanation on requirements for ATO reporting.
Explanation of fields – Allowance
|
Name |
Description |
|
Allowance Code |
Allows you to assign the Allowance a unique identifier. |
|
Description |
Allows you to enter a meaningful name for the Allowance. |
|
Discontinued |
Allows you to set an existing code to inactive. |
|
Value Per Unit of Measurement |
Specify the Amount and Calculation Method for the allowance. |
|
Calculation Method |
This pick list allows you to select the way you wish the system to calculate the amount for the allowance, such as Flat Rate. |
|
Taxable |
Allows you to indicate whether the allowance is subject to tax calculations |
|
Apply on Costs |
No longer in use |
|
Tax Reporting |
Select if this item requires reporting on your Single Touch Payroll file – select Print to include on STP file |
|
STP Reporting Description |
Free text description of the allowance |
|
ATO Allowance Type |
Select from drop down list to comply with ATO reporting requirements |
|
Expense Account |
Here you can select the General Ledger account that you would like to attribute costs to/from. Select a value from the list and press the OK button. The refreshed Allowance listing window will be displayed as follows: |