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Travel Allowances

Your employees may receive Travel Allowances for business related activities. You can capture these in a Saasu pay transaction in a few different ways. The following is an example for some kilometre's(Km's) travelled.

Always visit the ATO website and review the taxable status and criteria for Allowances before setting them up and paying them using Saasu.

Example: Employee earning 74 cents per kilometre for use of their personal vehicle. In this example the employee is below the tax threshold for this allowance.

  1. Go to the cog icon in the main menu and then select Settings (for this file)
  2. Scroll down to the section called Payroll
  3. Click Manage Pay Items
  4. Click on Wage and Salary
  5. Choose a name for the Pay Item
  6. Choose an account like Expense: Travel Expenses or similar
  7. Choose Fixed hourly rate of and enter the fixed rate of say 0.76 (being cents per kilometer). Even though this isn't hours it's Kilometre's we will use this as a way to capture the Allowance.
  8. Un-tick Taxable (If this is a tax free allowance. Check with your Advisor if you aren't sure)
  9. Select the correct Allowances Type for this item
  10. Save the new Pay Item

You can create multiple versions of Allowance pay item for different needs and rates.

In your payroll transactions enter the amount of Kilometres for the pay period in the hours field. e.g. 100 Kms travelled will generate $74.00 of Allowance basis the Pay Item setup example shown below.

When doing your Payment Summaries at year end you will need to Map this Pay Item to the Allowance field in the Payment Summary Wizard.