Step-by-Step Instructions

1. Open the Pay Run and Employee Record

1. Go to Payroll > Pay Runs.
2. Open the relevant pay run.
3. Click on the employee’s name to open their pay record.

2. Add the Allowance Pay Item

If the Allowance Pay Item Already Exists:

1. Click Add Pay Item.
2. From the list, select the relevant allowance (e.g. Travel Allowance, Meal Allowance).
3. Click Add.

If You Need to Create a New Allowance PayItem:

1. Click Add Pay Item, then click New Pay Item (top-left).
2. Enter the following:
   • Name : e.g. " Mobile Phone Allowance" or "Tool Allowance"
   • Payment Type: Select allowance from the dropdown.
3. Click save
4. Then select the new pay item and click Add to include it in the pay run.

The pay item name must be unique. Duplicate names will trigger an error.

3. Enter Allowance Amount

1. Click the pencil icon next to the allowance pay item.
2. In Qty/Hours, enter the number of units or occurrences (or 1 if paying a flat amount).
3. In Rate, enter the allowance amount.
4. Click Save.

4. (Optional) Override Tax and Super

If needed, you can manually override tax or super:

1. Click Edit Tax and Super.
2. Enter custom amounts in the Tax or Super fields.
3. Click Update.

Not all allowances are taxable or attract super. Check ATO guidelines or speak with your adviser if unsure.

5. Review Payslip and Reporting

• The allowance will appear on the employee’s payslip.
• It will also be reported to the ATO through STP under the correct allowance category.

Tips : 

• Use allowance pay items only when the payment qualifies as an allowance under ATO rules.
• For repetitive allowances (e.g. weekly tool allowance), create and reuse a specific pay item for tracking and compliance.

‍