Processing Allowances in a Pay Run
Allowances compensate employees for expenses or conditions related to their work, such as travel, meals, uniforms, or tools. Myaccountant supports a range of allowance types that are correctly reported to the ATO via STP.
Prerequisites
Ensure the relevant allowance pay item has been created under Payroll > Pay Items. Common allowance types include:
- Travel / motor vehicle allowance
- Meal allowance
- Uniform / laundry allowance
- Tool allowance
- First aid allowance
If you need to create a new allowance, see Create a New Pay Item.
Adding an Allowance to a Pay Run
- Navigate to Payroll > Pay Runs and open the pay run.
- Click on the employee's name to view their pay details.
- Click Add Pay Item.
- Select the allowance pay item from the dropdown list.
- Enter the amount or quantity and rate depending on how the allowance is configured.
- The allowance will be added to the employee's gross pay (or net pay, depending on the pay item's tax settings).
Tax and Super on Allowances
The tax and super treatment of allowances depends on the type:
| Allowance Type | Subject to Tax | Subject to Super |
|---|---|---|
| Travel / motor vehicle | Yes | Depends on award |
| Meal | Yes | Depends on award |
| Tool / equipment | Yes | No (typically) |
| Uniform / laundry | Yes | No (typically) |
Configure these settings when creating the pay item. See Tax and Super Settings for Pay Items for details.
STP Reporting
Allowances are reported separately in STP submissions under the appropriate allowance category. Myaccountant automatically maps allowance pay items to the correct ATO reporting category.