Payroll Deduction for Lotto

Hi AEH2 

Thank you for your post.

In this case, I would suggest creating a Deductions Category for it. As for the ATO category, it can be considered not reportable since it doesn't need to be itemised on an employee's tax return. Note that it is still recommended that you check with your accounting advisor or the ATO.

This Help Article, Deductions, has additional information that can help you as your guide. 

Please feel free to post again. I'm happy to assist further.

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Thanks for your response, Sean.

I know how to set up the deduction but I just wanted to check if I can then use the credit from the deduction and pay it to a 2nd employee with their pay?

Hi AEH2 

Thanks for clarifying that. What other users have done based on their experiences is to create a Spend Money Transaction with N-T, allocating to the liability account and pay manually without claiming GST. You can use the credit from the deduction to pay off the employee by doing this. Although, this is something I would recommend an accountant should confirm. It's best to seek advice on how you will process it. If you already confirmed the proper process, you can let me know so I can give you the best possible way to do what they advised within the software.