Setting up the allowance
The first step to setting up an allowance is to set up a pay category for the allowance. You can set a pay category using the following steps
Select "Settings" from the left navigation bar
Select "Allowances" under "Pay Roll"
Click the "Add New" button to create a new allowance.
Fill in the Fields
Allowance Name: Enter the name of the allowance.
ATO Reporting Category: Choose the relevant category to ensure proper reporting.
Amount: Enter the specified amount.
Select the appropriate options by ticking the boxes:
Is Taxable: If selected, taxes will be calculated on the allowance amount.
Exclude from STP: If selected, allowances won’t be reported to the ATO but will appear on employee payslips and payroll summary reports.
Super: If selected, the super guarantee amount will be calculated on the allowance amount.
5. Click on Add
This will successfully create the allowance item.
Set the allowance rate for the employee
1. Go to the Employees section.
2. Select the Employee.
3. Click "Pay Rates" and then "Allowances".
4. Click Add New and select the appropriate allowance item from the list.
5. Enter any necessary notes and tick "auto inc. in payrun" to display the allowance in the payrun.
6. Enter the amount for the allowance.
7. Save your changes.
Setting an allowance in a pay run
Once you have created your allowance pay category and set the pay rate for the employees that are entitled to the pay rate, you can add the allowance to the pay run for any other employees as well by following these steps
Go to Pay runs, Open the Pay run and click on the employee to which you want to add the allowance.
Under Allowances click on the "+" icon
Choose the Allowance item from the list and add the units
Click 'Save'
If you have any questions or feedback, please let us know via support@payroo.com.au