Directors Wages

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Contributing Cover User CatCat
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Directors Wages

Hi

 

How to put through directors wages through including to accumlate holiday pay, holiday leave loading, sick leave and super. This is NOT to go through the payroll system, so it will also need to reflect on holidays and sick leave being used.

I have been using spend money to pay directors wages, and payroll to accumulate holidays and super ect, however I come unstuck when having to process the directors wages when public holidays and holidays are due.

 

Any help is appreciated, many thanks in advance.

 

Thanks Karen

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Ultimate Partner Geoff_
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Re: Directors Wages

Hi @CatCat

 

Director wages normally go to Drawings.

 

However if you wish to treat it like a Payroll Item accumulating and not through the Payroll sysytem, I would suggest that you create separate items for the Director's holiday pay, holiday leave loading, sick leave and super under the Payroll Categories Lists.

 

Refer http://help.myob.com/wiki/display/ar/Wages#utm_source=AccountRight&utm_medium=InProductHelp&utm_camp... also refer http://community.myob.com/t5/AccountRight-Staffing-and/Directors-wages/m-p/445178#M29284

Where Julie gives a very in depth answer as always to a question like yours.

 

 

Geoff
Busselton Bookkeeping Service
MYOB Certified Consultant, BAS Service Provider
Phone 08 9754 7680
www.busseltonbookkeeping.com.au
Contributing Cover User CatCat
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Re: Directors Wages

Thanks Geoff, unfortunately that does not help me, as I am paying directors wages through spend money, and acummulating entitlements through payroll.

 

Karen

Super Partner IanChait
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Re: Directors Wages

Hi @CatCat

 

Why aren't you processing Directors Wages via the payroll? It would be much simpler and you will be able to calculate all the entitlenments.

 

Just an idea - You could create an Employee Card for the director, set up all the entitlements, and use  the Salary Sacrifice functionality to achieve this.

 

Record the amount you pay the director as Gross Wage , then Salary Sacrifice 100% in a Directors Salary Sacrifice Superannuation Category and link it to a Directors Salary Clearing Account in the Balance Sheet. This will create a Nil pay for the Director. Post the actual Spend Money payment to this Clearing Account. You can calculate 9.5% Super on the Gross Wage.

 

You would need to exclude and ignore all the Directors Payroll Categories when preparing payment summaries if they are not "Real" wages. I suggest you discuss this whole issue with an Accountant/Tax Agent to ensure you are complying with all the legislation.

 

 

Regards
Ian Chait CA
Certified Consultant Melbourne
P/M 0417 479 585
Fax 03 9012 4488
Email ian@myfc.com.au

Contributing Cover User CatCat
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Re: Directors Wages

Excellent, thanks Ian.

 

Regards

Karen

Ultimate Partner Seattle
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Re: Directors Wages

@CatCat @IanChait @Geoff_

 

Karen,

 

Like Ian, I would wonder why the Directors Wages would not be run via Payroll.

 

My understanding of Single Touch Payroll is that Directors Wages will be required to be run via Payroll.

 

I often post Directors Wages using Spend Money - Super is calculated from the P&L.

Many Tax Accountants have only one Wages Account - i believe it is imperative to segregate Wages and Super for external staff from Directors Wages.

 

Duncan

Duncan Smith
Business Advice + Tax
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
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