Important Notice: Information provided by Deputy is intended for general guidance purposes only and is not a substitute for professional legal or financial advice. Deputy does not accept liability for actions taken based on this information. Employers are responsible for ensuring their employees are paid correctly in line with the applicable award/s, industrial instrument/s and relevant employment agreements. For specific issues or if you are unsure about your employee/s’ entitlements, please consult a legal, financial or employment relations specialist. Deputy does not offer advice on employment law or taxation matters, including payroll specifics. |
Employees may be entitled to be paid allowances such as:
- car expenses - cents per km
- laundry
- overtime meal
- award transport payments
- domestic or overseas travel
- tool
- higher tasks
- qualifications or certifications
If you need to pay your employee one of these or any other allowance as part of their pay, you will need to add an extra earnings payment to their payslip:
- If the allowance is to be paid regularly to the employee in every pay run, you should set it up as a recurring extra payment in Payroll settings.
- If the allowance is a one-off payment, you can add it while completing the relevant pay run.
In this example, we add a one-off Overtime meal allowance (over the ATO reasonable amount) to the pay run as an extra payment.
Note:
- The chosen title - in this case "OT meal over ATO" - will appear on the employee's payslip.
- The Class chosen is Allowance
- The STP category chosen is Overtime Meal
Important Note: Deputy does not provide advice on employment law or taxation matters, including payroll specifics. Please seek professional advice from your legal/tax adviser if you are unsure what to select in these fields.
It is your responsibility to ensure that you are correctly classifying and reporting payment types through Single Touch Payroll. It is also your responsibility as an employer to ensure that you are paying your employees correctly in line with applicable award/s and industrial instrument/s and so it is important that you carefully review (and if necessary, make any adjustments to) the payslips generated for each of your team members before "completing" the pay run.
Additionally you may want to visit the ATO website for assistance with selecting the correct class and STP category.