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ATO Reporting Categories
Hi,
I am setting up a new pay item being KM reimbursement (which aligns with the Per KM Travel Allowance Item). However, it is taxed at source as an Allowance. As this item can be paid gross to the employee and then for them to sort out on their tax returns, how do I set this up in MYOB so it shows as being paid and is reported to the ATO, but no tax is withheld at source?
Hey rroberts,
Great question, and good on you for setting up your KM reimbursement the right way. To make sure your KM reimbursement isn’t taxed, mark that payroll category as “exempt” from PAYG Withholding. You can check this link for more info. This way, it'll still show as paid and report properly to the ATO, but no tax gets taken out at the source.
Cheers,
Doreen
