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 season to bulk up our fleet when needed.
This year one of the planes we have hired has come with a pilot. The deal is, he will remain employed by his current employer and they will invoice us the costs of the plane hire and the "pilot hire" ( wages, PAYG, super and such) We are however required to pay him a fortnightly meal allowance.
I am having trouble setting this up. I have linked an allowance account and set up the rate.
My problem comes when I go to process the payroll. My accountant has advised that this allowance should be exempt from the superannuation guarantee ( this is paid through his regular wages)
and, he also gets taxed quite high on this - As far as I was aware, the allowance is received in full and then receipts must be kept by the individual for tax purposes.
Is there something I have done wrong in setting this up?
I have changed the expense account from "salaries and wages" to "meals and accommodation" Is this ok?
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.
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
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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 season to bulk up our fleet when needed.
This year one of the planes we have hired has come with a pilot. The deal is, he will remain employed by his current employer and they will invoice us the costs of the plane hire and the \"pilot hire\" ( wages, PAYG, super and such) We are however required to pay him a fortnightly meal allowance.
I am having trouble setting this up. I have linked an allowance account and set up the rate.
My problem comes when I go to process the payroll. My accountant has advised that this allowance should be exempt from the superannuation guarantee ( this is paid through his regular wages)
and, he also gets taxed quite high on this - As far as I was aware, the allowance is received in full and then receipts must be kept by the individual for tax purposes.
Is there something I have done wrong in setting this up?
I have changed the expense account from \"salaries and wages\" to \"meals and accommodation\" Is this ok?
Any Help is appreciated.
","body@stringLength":"2027","rawBody":"
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 season to bulk up our fleet when needed.
This year one of the planes we have hired has come with a pilot. The deal is, he will remain employed by his current employer and they will invoice us the costs of the plane hire and the \"pilot hire\" ( wages, PAYG, super and such) We are however required to pay him a fortnightly meal allowance.
I am having trouble setting this up. I have linked an allowance account and set up the rate.
My problem comes when I go to process the payroll. My accountant has advised that this allowance should be exempt from the superannuation guarantee ( this is paid through his regular wages)
and, he also gets taxed quite high on this - As far as I was aware, the allowance is received in full and then receipts must be kept by the individual for tax purposes.
Is there something I have done wrong in setting this up?
I have changed the expense account from \"salaries and wages\" to \"meals and accommodation\" Is this ok?
Any Help is appreciated.
","kudosSumWeight":0,"postTime":"2024-12-03T17:27:11.187+11:00","images":{"__typename":"AssociatedImageConnection","edges":[{"__typename":"AssociatedImageEdge","cursor":"MjUuMnwyLjF8b3wyNXxfTlZffDE","node":{"__ref":"AssociatedImage:{\"url\":\"https://community.myob.com/t5/s/myob/images/bS04ODQ3MTEteVY3WUsy?revision=1\"}"}},{"__typename":"AssociatedImageEdge","cursor":"MjUuMnwyLjF8b3wyNXxfTlZffDI","node":{"__ref":"AssociatedImage:{\"url\":\"https://community.myob.com/t5/s/myob/images/bS04ODQ3MTEtNWx2NjJs?revision=1\"}"}}],"totalCount":2,"pageInfo":{"__typename":"PageInfo","hasNextPage":false,"endCursor":null,"hasPreviousPage":false,"startCursor":null}},"attachments":{"__typename":"AttachmentConnection","pageInfo":{"__typename":"PageInfo","hasNextPage":false,"endCursor":null,"hasPreviousPage":false,"startCursor":null},"edges":[]},"tags":{"__typename":"TagConnection","pageInfo":{"__typename":"PageInfo","hasNextPage":false,"endCursor":null,"hasPreviousPage":false,"startCursor":null},"edges":[{"__typename":"TagEdge","cursor":"MjUuMnwyLjF8b3wxMHxfTlZffDE","node":{"__typename":"Tag","id":"tag: allowances","text":" allowances","time":"2011-09-20T10:13:23.904+10:00","lastActivityTime":null,"messagesCount":null,"followersCount":null}}]},"timeToRead":1,"currentRevision":{"__ref":"Revision:revision:884711_1"},"latestVersion":null,"metrics":{"__typename":"MessageMetrics","views":170},"visibilityScope":"PUBLIC","canonicalUrl":null,"seoTitle":null,"seoDescription":null,"isEscalated":null,"placeholder":false,"originalMessageForPlaceholder":null,"messagePolicies":{"__typename":"MessagePolicies","canModerateSpamMessage":{"__typename":"PolicyResult","failureReason":{"__typename":"FailureReason","message":"error.lithium.policies.feature.moderation_spam.action.moderate_entity.allowed.accessDenied","key":"error.lithium.policies.feature.moderation_spam.action.moderate_entity.allowed.accessDenied","args":[]}}},"archivalData":null,"searchSnippet":"Hey, I have a payroll situation that I have never been in before. 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background-size: contain;\n background-position: center;\n}\n.myob-social-links .twitter a:before {\n background: url(\"data:image/svg+xml;charset=utf8,%3Csvg xmlns='http://www.w3.org/2000/svg' viewBox='0 0 24 24'%3E%3Ctitle%3EAsset 6%3C/title%3E%3Cg id='Layer_2' data-name='Layer 2'%3E%3Cg id='Layer_1-2' data-name='Layer 1'%3E%3Cpath d='M12,0A12,12,0,1,0,24,12,12,12,0,0,0,12,0Zm5.33,10c0,.12,0,.23,0,.35A7.75,7.75,0,0,1,5.4,16.92a5.48,5.48,0,0,0,4-1.13A2.73,2.73,0,0,1,6.89,13.9a2.73,2.73,0,0,0,1.23,0,2.73,2.73,0,0,1-2.19-2.67v0a2.73,2.73,0,0,0,1.23.34,2.73,2.73,0,0,1-.84-3.64,7.74,7.74,0,0,0,5.62,2.85,2.76,2.76,0,0,1-.07-.62,2.73,2.73,0,0,1,4.72-1.86,5.49,5.49,0,0,0,1.73-.66c-.2.64-.23.87-.79,1.21a1.46,1.46,0,0,0,1.34,0A5.8,5.8,0,0,1,17.33,10Z' style='fill:%23687480'/%3E%3C/g%3E%3C/g%3E%3C/svg%3E\")\n no-repeat;\n}\n\n.myob-social-links .googleplus a:before {\n background: url(\"data:image/svg+xml;charset=utf8,%3Csvg xmlns='http://www.w3.org/2000/svg' viewBox='0 0 24 24'%3E%3Ctitle%3EAsset 4%3C/title%3E%3Cg id='Layer_2' data-name='Layer 2'%3E%3Cg id='Layer_1-2' data-name='Layer 1'%3E%3Cpath d='M12,0A12,12,0,1,0,24,12,12,12,0,0,0,12,0ZM9,17.5a5.5,5.5,0,1,1,4.1-9.17L11.61,9.67a3.5,3.5,0,1,0,.56,3.84H9v-2h4.47a1,1,0,0,1,1,1.11A5.49,5.49,0,0,1,9,17.5Zm10.5-4v2h-2v-2h-2v-2h2v-2h2v2h2v2Z' style='fill:%23687480'/%3E%3C/g%3E%3C/g%3E%3C/svg%3E\")\n no-repeat;\n}\n\n.myob-social-links .facebook a:before {\n background: url(\"data:image/svg+xml;charset=utf8,%3Csvg xmlns='http://www.w3.org/2000/svg' viewBox='0 0 24 24'%3E%3Ctitle%3EAsset 1%3C/title%3E%3Cg id='Layer_2' data-name='Layer 2'%3E%3Cg id='Layer_1-2' data-name='Layer 1'%3E%3Cpath d='M12,0A12,12,0,1,0,24,12,12,12,0,0,0,12,0Zm3.51,12H13.2v7.2h-3V12H8.4V9.58h1.8V8.29A2.61,2.61,0,0,1,13,5.4h2.6V7.77H13.81a.58.58,0,0,0-.61.66V9.58h2.56Z' style='fill:%23687480'/%3E%3C/g%3E%3C/g%3E%3C/svg%3E\")\n no-repeat;\n}\n\n.myob-social-links .linkedin a:before {\n background: url(\"data:image/svg+xml;charset=utf8,%3Csvg xmlns='http://www.w3.org/2000/svg' viewBox='0 0 24 24'%3E%3Ctitle%3EAsset 5%3C/title%3E%3Cg id='Layer_2' data-name='Layer 2'%3E%3Cg id='Layer_1-2' data-name='Layer 1'%3E%3Cpath d='M12,24A12,12,0,1,0,0,12,12,12,0,0,0,12,24Zm1.82-10.71a1.2,1.2,0,0,0-1.2,1.2v4.2h-3s0-7.2,0-7.8h3v.89A3.72,3.72,0,0,1,15,10.91c1.78,0,3,1.29,3,3.78v4H15v-4.2A1.2,1.2,0,0,0,13.82,13.29ZM6.91,9.69h0A1.47,1.47,0,0,1,5.4,8.2,1.44,1.44,0,0,1,6.93,6.75a1.47,1.47,0,1,1,0,2.94Zm1.51,9h-3v-7.8h3Z' style='fill:%23687480'/%3E%3C/g%3E%3C/g%3E%3C/svg%3E\")\n no-repeat;\n}\n\n.myob-social-links .instagram a:before {\n background: url(\"data:image/svg+xml;base64,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\")\n 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Payroll Allowances","moderationData":{"__ref":"ModerationData:moderation_data:884719"},"body":"
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:
\n
\n
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Allowance Account and Rate: You've done well by linking an allowance account and setting up the rate.
\n
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.
\n
Taxation: Meal allowances are typically non-taxable, but if your accountant advises otherwise, ensure the correct tax settings are applied in the payroll system.
\n
Expense Account: Changing the expense account from \"salaries and wages\" to \"meals and accommodation\" is appropriate for meal allowances.
\n
Receipts for Tax Purposes: The individual should keep receipts for tax purposes, as the allowance is received in full.
\n
\n
\n
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.
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:
\n
\n
\n
Allowance Account and Rate: You've done well by linking an allowance account and setting up the rate.
\n
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.
\n
Taxation: Meal allowances are typically non-taxable, but if your accountant advises otherwise, ensure the correct tax settings are applied in the payroll system.
\n
Expense Account: Changing the expense account from \"salaries and wages\" to \"meals and accommodation\" is appropriate for meal allowances.
\n
Receipts for Tax Purposes: The individual should keep receipts for tax purposes, as the allowance is received in full.
\n
\n
\n
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.
\n
\n
\n
Kind regards,
\n
Shella
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