Hello
We have a new employee who has a novated lease. I need help to set up the following;
Pre tax deduction $808.30
Post tax deduction $221.51
When making the payments to the Novated Lease company which account should it be allocated to?
Replacing all support notes with FLARE information is not cool MYOB.
Yes I did speak to my Accountant, however I am a BAS Agent/Bookkeeper with over 20 years experience in MYOB. TI know what I am needing to set up, but we rely on your support notes to GUIDE us through this Set-UP, and this just isn't the case now. I'm beyond frustrated.
HI WMack,
Thanks for your post. In situations like these, we highly recommend consulting with an accountant for a precise solution. However, from my perspective, when making payments to the Novated Lease company, allocate them to the appropriate expense or liability account in your Chart of Accounts.
Allocate the payment for the Pre-Tax deduction ($808.30) to an expense account related to employee benefits or vehicle-related expenses. For the Post-Tax deduction ($221.51), allocate the payment to a liability account such as "Novated Lease Payable" or "Employee Deductions Payable." This ensures that the amount withheld from the employee's after-tax income is accurately recorded and remitted to the Novated Lease company.
Feel free to post again, we're happy to help!
If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.
Regards,
Earl
Thanks for your advice Earl. I'll set it up next week after speaking to our accountant.
Did you manage to set this up without Flare?
Hello Earl,
With regards to STP reporting, is the post tax deduction part is Not Reportable?
Thank you
FBT Recovery pre tax
FBT Recovery post tax
Thanks but I need more detail on how to actually set up in MYOB
