Institute of Certified Bookkeepers
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What is the correct way to treat km reimbursed to employee?

  • Member in Practice
  • Practice Certificate
  • 2 posts
  • # 120064

Hi everyone, 

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?

  • 45 posts
  • # 120065

Hi,

This table from the ATO is a really helpful resource.

This should not be a reimbursement because there is no receipt supplied.

An allowance, classed as "Car" is correct, "Travel" is for eg overnight accomodation.



Edited at 20 Sep 2021 04:30 AM GMT

  • Member in Practice
  • Practice Certificate
  • 2 posts
  • # 120066

Thanks so much for your reply. I have amended it to a car allowance.

  • 2 posts
  • # 120083

Pillar Bookeeping Services Pty Ltd said:

“Thanks so much for your reply. I have amended it to a car allowance.”

Inspiring me thank you

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