How to Record a Non-Deductible Payment made from Bank account?

Question

Hi our company has paid a driving fine for one of our employees (as it was incurred during the time they were on the job). How do I record it to show that the money has been paid from the bank account but it is not an allowable deduction for tax purposes? All my expense accounts come straight off my profit and I don't know how to create one that doesnt.

tezzab1 · Answer

MaryHa I suggest you create a separate P&amp;L account for Fines &amp; Penalties to capture it.&nbsp; Use that account for other non-deductible fines &amp; penalties also such as ASIC late fees, parking fines, ato late lodgement penalties etc.&nbsp; &nbsp; &nbsp; Your accountant can then easily exclude everything in that account when preparing the tax return.&nbsp; &nbsp;

maryha · Answer

Thank you so much that makes sense.

Forum Discussion

How to Record a Non-Deductible Payment made from Bank account?

Looking for something else?

Related content

Novated Lease Payment - Set Up Account/Line Item

Electronic Payment Linked Account Error

Double payment to different bank accounts

Payments to Wise account holders accepted?

Accounting for Amex payments

GST report - Accounting method - Payments vs Invoice radio button

Changing linked bank account for electronic payments

Employee deduction for non work related amount