How do I create a new employee allowance in MYOB Payroll?

Employee allowances take many different forms: motor vehicle allowance, tool allowance, uniform allowance and so on. Although the standard payroll category list that comes with MYOB Payroll doesn’t include any allowances, it’s not difficult to add them.

To create a new allowance, click Payroll Categories, followed by the Wages tab and click New. As the Wages Name, enter a description such as ‘Tool Allowance’ and as the Type of Wages, select Salary. Click Employee to choose those employees who are eligible for this allowance.

Next, click the Payroll Details tab for each employee who receives this allowance and click Standard Pay. Complete the Amount column next to the allowance category and click OK. (By using standard pays in this fashion, you can create a single allowance category such as ‘tool allowance’ but pay different employees at different rates for this allowance, depending on the award.)

Remember to check out whether this employee allowance is taxable, or not. See How do I know whether tax is payable on an allowance for more details.

The contents from this page are taken from Making the Most of MYOB Payroll, 2nd edition, by Veechi Curtis, available online for only $19.95

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