Payroll Allowances
Hey, I have a payroll situation that I have never been in before. To give some context - We operate a scenic flight company. We cross hire aircraft by the hour off other companies in their low seas...
Hi Gyan90,
Thank you for the screenshots provided. It's like you're in a unique payroll situation. Here's a quick guide to help you set up the meal allowance correctly:
- Allowance Account and Rate: You've done well by linking an allowance account and setting up the rate.
- Superannuation Exemption: To ensure the meal allowance is exempt from the superannuation guarantee, you need to mark it as non-taxable. This can be done in the payroll settings where you set up the allowance.
- Taxation: Meal allowances are typically non-taxable, but if your accountant advises otherwise, ensure the correct tax settings are applied in the payroll system.
- Expense Account: Changing the expense account from "salaries and wages" to "meals and accommodation" is appropriate for meal allowances.
- Receipts for Tax Purposes: The individual should keep receipts for tax purposes, as the allowance is received in full.
See this link for more details about this. Also, it is helpful to consult with your accountant again while doing this to avoid further issues.
Kind regards,
Shella
