Allowances are being added to Gross Payments in Payroll Premier

Legacy KB ID: 4609

Question

Why do my Allowances appear both in the Allowance section of the Payment Summary and in the Gross Payments in Payroll Premier?  They should only appear in one section. 

Answer

Allowances paid to employees can either be tax-free or taxed.  Users should check with the ATO and their industry associations on the tax status of the Allowances being used.  This ATO website provides some basic information:  https://www.ato.gov.au/businesses/PrintFriendly.aspx?ms=businesses&doc=/content/18499.htm

In most cases,

·         If an Allowance is tax free, it must appear in the Allowances section of the Payment Summary.

·         If an Allowance is taxable, it must be included in Gross Payments on the Payment Summary. 

In some cases a taxable Allowance must be listed in the Allowances section rather than in Gross Payments. 

 

Setting up an Allowance in Payroll Premier

Users should refer to the Payroll Premier Help Index for basic information on Allowances.

To create an Allowance:

  1. Go to Lists > Allowances > New;
  2. If a Threshold applies, click on the Threshold tab and enter the amount;
  3. In the Amount tab, select either Amount or Percentage and if relevant, enter an amount or percentage. 

To configure a Taxable Allowance:

  1. In the bottom box of the General tab click the dropdown arrow and sell Display in Gross In Payment Summary;
  2. Tax Exempt Allowance box is to remain unticked;
  3. Tick boxes for Super, Payroll Tax and WorkCover as appropriate.

To configure a Tax-Free Allowance:

  1. In the bottom box of the General tab click the dropdown arrow and select Display in Allowances In Payment Summary;
  2. Tick the Tax Exempt Allowance box;
  3. Tick boxes for Super, Payroll Tax and WorkCover as appropriate.

To configure a Taxable Allowance to appear in the Allowances section:

  1. In the bottom box of the General tab click the dropdown arrow and select Display in Allowances In Payment Summary;
  2. Tax Exempt Allowance box is to remain unticked;
  3. Tick boxes for Super, Payroll Tax and WorkCover as appropriate.

 

Using Allowances in Payroll Premier

When you add an Allowance to the Employee record, generic configurations are not populated.  You will need to configure the Allowance for the employee.

In a pay run, Allowances are populated from the Employee record.

When adding an Allowance during a pay run, the generic configuration will populate.  You can make changes to this configuration before proceeding with the pay. 

 

How did we do?

Payroll Premier: Registration information appears corrupt error

FAQ - Memorised payslip show the data printed

Related Articles

Allowances incorrectly included in Gross Amounts in Payroll Premier’s History tab
Payroll Premier: Deductions and Allowances report incorrectly on the Payment Summary
Cannot create SuperStream export file when new employees added in Payroll Premier
Powered by HelpDocs (opens in a new tab)

Powered by HelpDocs (opens in a new tab)