How do i set up Evening Meal Allowance below ATO reasonable threshold correctly?

Minihan

Greetings. I have an employee being paid approx. $35 x 5 days pw for Evening Meal Allowance, which is below ATO reasonable threshold, so should show up on payslip as tax free payment but not be reported under STP (so is showing in his MyGov as income). The Payroll Exempt tab has the 'PAYG Withholding' ticked as tax free. 

How do i set it up correctly, so it is paid as a tax free payment on the payslip, but not reported under STP & thus not recorded as income at the recipients end?

 

Shella_A

Hi @Minihan,

 

Thanks for the detailed rundown! If your evening meal allowance is under the ATO reasonable threshold, you’re right that it should be tax‑free on the payslip and not show up in STP/MyGov if set up correctly. Make sure the allowance pay item has PAYG Withholding marked as exempt and its ATO reporting category set to Not Reportable. You can double check the steps here. If it still being stubborn, best shot is to give our live chat a buzz via our virtual assistant MOCA or lodge a support request at MyAccount and will help you sort it out.

 

 

Cheers,

Shella