I've received conflicting advice on how to treat business related km travelled by an employee. So I'm hoping I can get an answer. The Award states the employer must pay 80c per km for business related travel to their employees. Each week the employee submits her actual kms travelled. I've recorded this a reimbursement on the payslip as a travel expense, which the accountant agrees with.
However, other accountants/bookkeepers are saying that this should be an allowance through payroll as a wage expense. 72c is not subject to PAYG and super, and 8c is subject to PAYG. And both should be recorded at W1 on the activity statement.
What's the answer?