When adding new allowance parameters, these need to be created based on the ATO “Allowances to pay event coding – Individual Non-Business” document.
Examples are provided below for correct settings:
Parameters > Set Parameters > Payroll > Payroll Payment and Deduction Codes (Type-PC).
Type 1 - Separately Reportable Allowances, e.g., Laundry for deductible clothing.
| Payroll Code (Example) | Description (Example) | Settings |
| ALAT | LAUNDRY Laundry for deductible clothing up to the threshold amount where employer is not required to withhold. (ATO Table 4) | Untick Normal Pay Tick After Tax Untick Exclude on PAYG Allowance Code: Laundry |
Type 2 – Allowances included in Gross Payment, e.g., Special Duties Allowance
Payroll Code (Example) | Description (Example) | Settings |
| ASPEC | SPECIAL DUTIES Crib, danger, dirt, height, site, shift or travelling time, Trade, first aid certificate or safety officer (ATO Table 1) Tick | Tick Normal Pay Untick After Tax Untick Exclude on PAYG Allowance Code: blank |
Type 3 – Non-reported Allowances, e.g., Reimbursement
Payroll Code (Example) | Description (Example) | Settings |
| AME | MEAL ALLOWANCE AWARD Award overtime meal allowance up to reasonable allowances amount (ATO Table 5) | Untick Normal Pay Tick After Tax Tick Exclude on PAYG Allowance Code: blank |
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