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H-TS's avatar
H-TS
Trusted User
4 months ago

How do you handle a cents per KM car allowance over ATO rate

Hi,   We have some new employees who are on awards I haven't encountered before, that specify a per-km allowance higher than the tax-free rate assigned by the ATO.   Do I need to have two separat...
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  • Earl_HD's avatar
    Earl_HD
    3 months ago

    Hi H-TS

    Given the situation, the only option is to set up two separate pay categories: one for the tax-free portion (up to 88c per km) and another for the taxable portion (the additional 10c per km). This will ensure correct processing according to tax regulations.

    For further guidance and to ensure compliance, it's advisable to consult with an accountant. They can provide expert advice and help streamline the process.

    Regards,
    Earl

Earl_HD's avatar
Earl_HD
MYOB Moderator
3 months ago

Hi H-TS

Given the situation, the only option is to set up two separate pay categories: one for the tax-free portion (up to 88c per km) and another for the taxable portion (the additional 10c per km). This will ensure correct processing according to tax regulations.

For further guidance and to ensure compliance, it's advisable to consult with an accountant. They can provide expert advice and help streamline the process.

Regards,
Earl

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