STAFF REIMBURSEMENT

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Contributing Cover User PENNY
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STAFF REIMBURSEMENT

MYOB instructions regarding the setup of a Staff Reimbursement is to allocate the reimbursement to Salary. Select Salary for the Type of Wages.  There is an override of the Wages Expense Account, and Exemption from PAYG and Super.  But i am concerned that the Reimbursement has been added into the Salary total and will shows as Salary on the Group Cert.

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Partner Julie_A_C
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Re: STAFF REIMBURSEMENT

Hi Penny,

 

Couple of ways you could do this.

 

Do a spend money from chq account or electronic payment account (leaving it completely put of payroll), have the employee set up as a supplier with banking details, do the reimburesment and allocate to the applicable expense account and claim back your GST.

 

Or if you do it as per the MYOB instructions then you just have to ensure that once you are STP reporting the category is marked as Not reportable and that when you run payment summaries, the reimbursed expense is not ticked as being included in wages gross.

 

 

Julie Carter AIPA, BBus(Acctg),
MYOB Professional Partner, Registered BAS Service Provider
Associate Member of Institute of Public Accountants
Member Association of Accounting Technicians
ph: 0417 927 654 email: accuratebooks7@gmail.com
JAC' of All Trades Bookkeeping (Servicing from Leederville to Pinjarra, Fremantle to Armadale WA)
Contributing Cover User PENNY
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Re: STAFF REIMBURSEMENT

Thanks Julie.  I wish i had done it as a spend money.  I wont do it per the instructions again - just in case.  I am STP reporting and have made sure that the Category is marked Not reportable and that its not ticked when running the Group Certs.   Thanks for your help

Contributing User wenx
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Re: STAFF REIMBURSEMENT

Hi. all

 

Please see attached payslip file, which was created from MYOB sample company file.

 

I have similar question. Owing to our company having just started to pay staff's reimbursement with their wages together. All of set-up for staff reimbursement, I have followed the support note, it is ok. The question is: from attached payslip, you can see the line of employee reimbursement , its type is still called "wages", which has made our staff confused. They came to ask me why the employee reimbursement is called "wages" ? they doubt this will be counted towards their wages' amount. I explained to them, and showed them : in the payroll category , it has overrided the wages account. However, the type name is called :wages, it seems the payslip does not properly show their reimbursement. It the type is called: Non-wages, which will better show to staff. 

 

So I was wondering : on the payslip, for employee's reimbursement, is it possible for the type's name could change to different name, not called "wages" ?  

 

Thanks very much for anyone could clarify this issue.

 

Wen

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Re: STAFF REIMBURSEMENT

Hi @wenx,

 

I wouldn't care what you show me in MYOB or another program about the expense overriding going to wages.  I would be asking what is being reported to the ATO when you lodge your Payment summaries at year end, and once you are on STP and report every payrun.

 

What is actually being selected to be included in the Gross Wages reported for the employee?

 

You may know what you are doing, but what happens if you are not there when the actual returns are lodged? Does the bookkeeper at that time know what they are doing and select the correct items to include/report?  Sometimes yes, but more often NO.

 

It s always best to keep any staff reimbursements entirely out of payroll and do them by a spend money to the employee via a supplier card you set up for them, or pay them from Petty cash in actual cash. 

 

That way you can have one entry, instead of two, to claim the GST back, as you can, and reimburse the employee and the employee gets their money and is not concerned about tax implications.

 

Less time on your part doing one entry instead of two and less time having to talk and pacify employees.

 

 

 

 

Julie Carter AIPA, BBus(Acctg),
MYOB Professional Partner, Registered BAS Service Provider
Associate Member of Institute of Public Accountants
Member Association of Accounting Technicians
ph: 0417 927 654 email: accuratebooks7@gmail.com
JAC' of All Trades Bookkeeping (Servicing from Leederville to Pinjarra, Fremantle to Armadale WA)
Contributing User wenx
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Re: STAFF REIMBURSEMENT

Hi, Julie

 

Thanks very much for your reply.  I agree with what you said:  It s always best to keep any staff reimbursements entirely out of payroll and do them by a spend money to the employee via a supplier card you set up for them, or pay them from Petty cash in actual cash. 

 

I will enter it via a spend money. 

 

Kind rgds

 

Wenx

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Re: STAFF REIMBURSEMENT

Its not necessary to setup a supplier card . You can do a spend money directly to the employee card and Don't Worry, it wont come up on any payroll reporting, STP or otherwise.

 

This way you do not have to maintain 2 separate cards for employees with reimbursements

 

Hope this helps

 

Cheers

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