1. Select Pay Types > New Allowance or
    Select Pay Types from the Side Bar, Navigate to Pay Type, click on the drop-down menu and change to Allowance then click New.
  2. Enter the Description.
  3. In Paid by, select Per Hour
  4. in Amount $ or %, enter 100%
  5. In Tax Treatment, select Non-Reportable (The ATO publishes an annual Ruling that set out the reasonable allowances amounts).
  6. Deselect Taxable,
  7. An Alert will be displayed. Select No.
  8. Deselect Include in W1
  9. Deselect Payroll Tax
  10. Deselect Contributes to $450.00 Rule
  11. Select Save
  12. An Alert will be displayed. Select Yes.
  13. Select Exit
Revision: 5
Last modified: Feb 04, 2022