Institute of Certified Bookkeepers
First Previous - Page 1 of 1 - Next Last

Accounting for Work Experience

  • Fellow in Practice
  • Practice Certificate
  • Certified Bookkeeping Practice
  • 71 posts
  • # 92942

I've done a Google search but have not been able to find any information whatsoever about how to treat payments for work experience. Does anyone have any links?

  • Fellow in Practice
  • Practice Certificate
  • 51 posts
  • # 92943

Hi Carmen,

It’s a little unusual to pay someone on work experience. However, if that work experience person was paid, and I assume that he/she would be paid a minimal amount, and not for long period of time, then I would suggest that you open an account in expenses and call it ‘temporary’ or ‘casual’ labor. No PAYG Withholding tax is taken out, and the amount does not go through payroll.

Best regards,



Richard Lowe. FICB (Fellow); MYOB Certified Consultant; Registered BAS Agent.





Richard Lowe & Associates

PO Box 269

Oatley NSW 2223.



MOB: 040 974 8038

EMAIL: richard.lowe@micb.com.au

  • Fellow in Practice
  • Practice Certificate
  • Certified Bookkeeping Practice
  • 71 posts
  • # 92944

Thanks Richard. What's the appropriate BAS/GST treatment? BAS excluded like wages?

  • Fellow in Practice
  • Practice Certificate
  • 51 posts
  • # 92946

Hi Carmen,

The GST code would be N-T (not reportable), and it gets excluded from the BAS as you have stated. It is tax deductible for tax purposes.

Regards,

Richard Lowe.

  • Fellow in Practice
  • Practice Certificate
  • 455 posts
  • # 92947

Hi Carmen
well done Richard

It would seem a work experience student could be considered a contractor in some senses, however that would require registration for an ABN.  this seems in appropriate for school students

therefore they would be an employee
PAYG Withholding allows that they provide a TFN declaration.  That dec could say application pending, that dec would also claim the tax free threshold and therefore no tax to withhold. Arguably they should get a payment summary.

We will do some further research as I am applying logic which may not be want the law requires.

  • Associate in Practice
  • 2 posts
  • # 118727

Matthew Addison said:

“Hi Carmen
well done Richard

It would seem a work experience student could be considered a contractor in some senses, however that would require registration for an ABN.  this seems in appropriate for school students

therefore they would be an employee
PAYG Withholding allows that they provide a TFN declaration.  That dec could say application pending, that dec would also claim the tax free threshold and therefore no tax to withhold. Arguably they should get a payment summary.

We will do some further research as I am applying logic which may not be want the law requires.”

Hi Matthew

I would love to know the answer to this. Did you ever find out?  How do we account for payment for work experience for a school aged child? My client has made two payments, but no documentation and the child does not have an ABN, understandably. 

Thank you, Caroline

  • Associate in Practice
  • 2 posts
  • # 118728

Matthew Addison said:

“Hi Carmen
well done Richard

It would seem a work experience student could be considered a contractor in some senses, however that would require registration for an ABN.  this seems in appropriate for school students

therefore they would be an employee
PAYG Withholding allows that they provide a TFN declaration.  That dec could say application pending, that dec would also claim the tax free threshold and therefore no tax to withhold. Arguably they should get a payment summary.

We will do some further research as I am applying logic which may not be want the law requires.”

Hi Matthew

I would love to know the answer to this. Did you ever find out?  How do we account for payment for work experience for a school aged child? My client has made two payments, but no documentation and the child does not have an ABN, understandably. 

Thank you, Caroline



Edited at 28 May 2020 12:09 AM GMT

  • 7 posts
  • # 118865

Caroline Gratzer said:

Matthew Addison said:

“Hi Carmen
well done Richard

It would seem a work experience student could be considered a contractor in some senses, however that would require registration for an ABN.  this seems in appropriate for school students

therefore they would be an employee
PAYG Withholding allows that they provide a TFN declaration.  That dec could say application pending, that dec would also claim the tax free threshold and therefore no tax to withhold. Arguably they should get a payment summary.

We will do some further research as I am applying logic which may not be want the law requires.”

Hi Matthew

I would love to know the answer to this. Did you ever find out?  How do we account for payment for work experience for a school aged child? My client has made two payments, but no documentation and the child does not have an ABN, understandably. 

Thank you, Caroline



Edited at 28 May 2020 12:09 AM GMT

 Did you get a solution for it? Maybe you can contact experts.

First Previous - Page 1 of 1 - Next Last
loading