Directors Fees

Hi JennyS76​ 

Check with the Tax Accountant if they want the director set up as an employee and have tax withheld, or if it is just to be done as a spend money transaction and allocted to a new expense account called Director's fees, prior to doing anything.

Hi @JennySharp,

You would need to set up the director as an employee, add a payroll category for director fees, and run payroll as usual. With STP Phase 2, there's now an ATO reporting category for Director's fees, so those payments get flagged to the ATO as such. Check these help articles below that will guide you through the process.

Add an employee

Payroll categories

Assign ATO reporting categories

Cheers,

Shella

Thank you

Hi JennyS76​ 

Don't forget to mark them as a closely held employee if the Accountant is wanting them paid via payroll with tax taken out.

This can be found in the tax section, instead of salary and wages choose closely held payee for the income type.

What would the tax code be if you're setting this up as a new expense account? Also, what would you put as the card name when you go to enter the spend money transaction?