Hi
Our NFP organisation has just started to allow employees to SS meals/entertainment up to $2,650 cap.
I am just a little confused on how we set this up in payroll. So far we have set up a new pay item under deductions for the Meal allowance but that is as far as we have gotten.
Any advice or assistance would be appreciated.
Thanks.
Hey financehouse05,
Setting up salary sacrifice for meals and entertainment is a fab perk. You've got the deductions pay item sorted, so next, check if it aligns with the ATO's Fringe Benefits rules since these perks are often exempt benefits for NFPs. Link the deduction pay item to the right expense category in your chart of accounts and ensure its correctly mapped for payroll reporting. Don't forget to get employee agreements sorted and document the process for future reference. You can find the process guide here. It’s also a good idea to get help from your accounting advisor to work through the specifics of your salary sacrifice.
Cheers,
Shella
