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MYOB Essentials

Payroll: Exclude allowances from tax and super

Contributing User

7Posts

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7 Posts
Contributing User

 

I have contacted Tech Support for an easy way to reimburse an employee for an Expense and they have stated there is not.

 

Currently if you put in in their pay as an allowance or the like it will be taxed and accrue super.

 

Process - employee submits an expense form, how do people currently pay them back? You really need these line items to be entered into your system to capture them as expenses and to capture the GST paid on the items.

 

"Employee Reimbursements"

Current Status: Done
Last Changed: November

Hi Everyone


When creating allowance pay items in MYOB Essentials you will have the option to Include (or Exclude) Pay Super on an earning and the same is also true for accrual of annual and sick leave. For more information on creating a pay items do review Help Article: Creating pay items

5 Comments
Ultimate Partner Geoff_
1,721 Posts
Ultimate Partner

Hi Jamie

 

Why don't you just keep it simple?

 

Treat you employee as a supplier and pay them as you would a supplier.

Super Partner PHalls
254 Posts
Super Partner

That's how I do it Geoff, no need to complicate it by putting it through payroll.

 

Although if you really wanted to, you could create a new Payroll Category called Ëmployee Reimbusements'. You would create it as a deduction, but enter the amount as a positive, rather than as a minus. This then adds the amount of the reimbursement to the employee's net pay, but does not affect PAYG or Super. 

 

You will need to set up a Liability account - call it Ëmployee Reimbursemetns"and enter this in the Payroll Category field "Linked Payables Account". You will then need to journal out all of the expenses from the liability account to the correct expenses accounts. The tax code for both sides of the Liability a/c will be N-T, and you will apply whatever GST code is corect to the expense accounts.

 

When you print Payment Summaries, you would leave this category unticked, so it will not appear on teh Employee's Payment Summary. You will also need to keep good notes in the PAyroll records to explain why the payment has been made - I would have the employee complete an expense claim form. Staple the receipts to it, and leave a copy in the PAyroll File.

 

Pretty long winded, really - much easier to just treat the employee as a Supplier!

Ultimate Partner ronatbas
4,530 Posts
Ultimate Partner

As Geoff and Patricia have pointed out simplicity is the name of the game - we always use a separate card  eg Tom Smith not Smith Tom. Very useful for situations where the there is a Director who draws a wage and then spends out his own pocket to cover various expenses.

BTW allowances only accrue super and PAYG if you let them - but that is another discussion.

 

RonB

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MYOB Moderator Matthew_W
2,173 Posts
MYOB Moderator
Thank you for your feedback on this, we're always looking at ways to improve LiveAccounts and making the payroll system more robust is something we're happy to consider. Those who would like to see this in particular added please remember to vote. The suggestions above that have been posted on how you can record this and keep it simple are something that you may want to consider to use while this is not part of the program.
MYOB Moderator Steven_M
32,257 Posts
MYOB Moderator

Hi Everyone


When creating allowance pay items in MYOB Essentials you will have the option to Include (or Exclude) Pay Super on an earning and the same is also true for accrual of annual and sick leave. For more information on creating a pay items do review Help Article: Creating pay items