I have paid LAFHA allowance for 2 employees, but don't know how to enter. Can anyone guide me please? Thanks in advance. I have paid the physical payment, nothing in payroll setup other than standard... The more i look, the more confused I am.
Hi DebPitts
Thank you for your post. I'm glad to assist you with your concern.
Generally speaking, if the employee is receiving an allowance, then it would be set up as an allowance.
Based on ATO's help article, LAHFA is considered a fringe benefit, which may or may not be reportable. If it is a reportable fringe benefit amount, then please follow the instructions in this Help Article - Reportable fringe benefits amounts (RFBA) with Single Touch Payroll reporting. If the wage category is assigned as 'Not Reportable', then the amount paid will not be included in the YTD Gross Wages, which ATO tracks to determine the required PAYG amount.
I recommend speaking with your accountant or with ATO regarding the correct setup of your employees' LAHFA.
Please let me know if you have further enquiries, and I'll be happy to help.
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