Car allowance
Hi myob community
One of our employee's is being given a set $13K gross per annum car allowance ($250 weekly) He is on a salary.
...On the ATO website $0.72/km up to 5000km is Tax Free which equals $3,600, the remainder $9,400 to be taxed...
I have no idea how to set all this up in MYOB both reporting correctly with STP to ATO
and paying the employee the correct amount each week, whether the tax free amount $250 or the withheld amount $192.
I have looked at previous queries but am still none the wiser as he is not being paid a cents per km allowance but a set amount each week, somethings not clicking with me, it doesn't seem simple.
Thanks in anticipation
Hi Jlee
Thanks for your post. From an AccountRight perspective this help article has step-by-step instructions on how to set up an Allowance: Allowances
Payroll categories are reported through STP according to the ATO reporting category selected. This help article will assist with selecting the correct ATO reporting category when creating the Allowance payroll category: Assign ATO reporting categories
When is comes to PAYG Withholding on the car allowance you will need to speak to your accountant or the ATO to make sure you are withholding the correct amount.
Please let me know if you need further help.
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