Learn how to add an allowance to a pay run in Payroller with our simple guide below.
Read up on the different definitions for Allowances here.
Step 1: Select '+ New Pay Run'.
Step 2: Customise the Pay Run Period, Pay Period Ending date, and Payment Date, then click ‘Let's Start!’.
Step 3: Select ‘More’.
Step 4: Select ‘Allowance’.
Step 5: Enter the Allowance unit and its cost per unit.
Step 6: You can then choose whether it is Subject to tax and super, Subject to tax but exempt from super or Exempt from both tax and super.
Step 7: Finally, choose what type of allowance it is. The options are: Award transport payments, Cents per kilometre, Task, Laundry, Overtime meal, Qualification, Travel, Tool, Other -Non-Deductible, Other-Uniform, Other-Private Vehicle, Other-Home Office, Other-Transport/Fares and Other-General
Step 8: Select ‘Next’.
Step 9: Save the pay run.
Step 10: Submit the pay run.
Once you have finalised the pay run you will be able to see the allowance on the employees' payslip.
If you have recurring Allowances you can add this in the templates section of the employee card.
Allowance Definitions
The following definitions are to be used as a guide only. Please refer to the ATO for the full definitions and the criteria for providing these allowances.
Award transport payments
Deductible expense allowances for the total rate specified in an industrial instrument to cover the cost of transport for business purposes, as defined in section 900-220 of the Income Tax Assessment Act 1997.
Cents per KM
Deductible expense allowances that define a set rate for each kilometre travelled for business purposes that represents the vehicle running costs, including registration, fuel, servicing, insurance and depreciation into account.
Laundry
Deductible expense allowances for washing, drying and/or ironing uniforms required for business purposes.
Overtime meal
Deductible expense allowances defined in an industrial instrument that are in excess of the ATO reasonable amount, paid to compensate the payee for meals consumed during meal breaks connected with overtime worked.
Qualifications
Deductible expense allowances that are paid for maintaining a qualification that is evidenced by a certificate, licence or similar.
Task
Service allowances that are paid to a payee to compensate for specific tasks or activities performed that involve additional responsibilities, inconvenience or efforts above the base rate of pay.
Tool
Deductible expense allowances to compensate a payee who is required to provide their own tools or equipment to perform work or services for the payer.
Travel
Deductible expense allowances that are in excess of the ATO reasonable allowances amount (for domestic or overseas travel), undertaken for business purposes, which are intended to compensate employees who are required to sleep away from home.
Other
Any expense allowances that are not otherwise separately itemised.
Learn how to add other items to your pay run in Payroller with our other simple guides:
Discover more tutorials & get the most out of using Payroller
Learn more about easily creating and editing pay runs with our simple guides.
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