Hello
We have a new employee who has a novated lease. I need help to set up the following;
Pre tax deduction $808.30
Post tax deduction $221.51
When making the payments to the Novated Lease company which account should it be allocated to?
FBT Recovery pre tax
FBT Recovery post tax
Thanks but I need more detail on how to actually set up in MYOB
HI WMack,
Thanks for your post. In situations like these, we highly recommend consulting with an accountant for a precise solution. However, from my perspective, when making payments to the Novated Lease company, allocate them to the appropriate expense or liability account in your Chart of Accounts.
Allocate the payment for the Pre-Tax deduction ($808.30) to an expense account related to employee benefits or vehicle-related expenses. For the Post-Tax deduction ($221.51), allocate the payment to a liability account such as "Novated Lease Payable" or "Employee Deductions Payable." This ensures that the amount withheld from the employee's after-tax income is accurately recorded and remitted to the Novated Lease company.
Feel free to post again, we're happy to help!
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Regards,
Earl
Thanks for your advice Earl. I'll set it up next week after speaking to our accountant.
