Setting up the Car Allowance - Travel Kms

Hi Thula1, 

Thank you so much for your detailed post with screenshots, and welcome to the Community Forum! I'm sorry to hear that you are having issues when setting up car allowance. I really appreciate your patience and understanding about this issue, and I do apologize for the delayed response. To address this issue, we highly recommend consulting with an accountant who specializes in these matters. However, here are some suggestions on how to set up an allowance: Allowances

• Go to the Employee's Card.
• Click on the "Payroll Details" tab.
• In the "Payroll Categories" section, click "Allowances."
• Click "New" to create a new allowance category.

Define the Car Allowance:

• Give the allowance a name (e.g., "Car Allowance - Travel KM").
• Under "Taxation Type," select the appropriate tax treatment for this allowance (e.g., "Flat Rate" or "Not Included").
• In the "Amount" field, leave it as 0. This will allow you to enter the amount of kilometers in the payslip.

Set Up Payslip Entry:

• When processing payroll, go to the employee's payslip.
• Under the "Earnings" section, add a line item for the car allowance.
• Enter the number of kilometers traveled in the quantity field. MYOB will calculate the amount based on the cents per kilometer rate.

Define the Cents per Kilometer Rate:

• Ensure you have the cents per kilometer rate configured correctly for your employees. You can set this rate in the allowance setup or as a standard practice for all employees receiving a car allowance.

Feel free to post again if you have further queries and one of us will be happy to assist you.
Regards,
Earl