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RubyphamAU's avatar
RubyphamAU
User
5 days ago

Car Allowance Setup for Payroll Tax Computing

Hi all,

 

Under our Awards, we are paying employees car allowance of 98 cents per km. We have set up two separate pay categories for the taxable (for the excess of ATO rate) and non-taxable amount (payment at 88 cents per km).

 

However, when it comes to Payroll Tax calculation, the exempt component of car allowance is calculated using ATO rate of the previous financial year which is 85 cents for F23-24. How should we set up the payroll category so that payroll tax will compute it right? 

 

Any suggestions are greatly appreciated.

Ruby

1 Reply

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  • Doreen_P's avatar
    Doreen_P
    MYOB Moderator
    5 days ago

    Hi there @RubyphamAU,

     

    If the tax table is correct and it was assigned to the employee card file correctly, it should be good. However, in your case, you can check this link for more information regarding car allowance.

     

    Best regards,

    Doreen