For more information on how Car Allowances are paid in Australia, please refer to our Car Allowance Factsheet.

Set up the Car Allowance Pay Item

1. From the Organisation Menu, go to Settings > Payroll Settings
2. Select the [Pay Items] >[Earnings] Tab
3. Click on [Add] > Allowance
   
   

   è  The Pay Item screen opens
   
   
   
   

4. Select/Enter the following details:
   • Earnings Name         > Type: Car Allowance
   • Type                        > Select: Other
   • Category                  > Select: Non-deductible
   • Display Name           > Type: Car Allowance
   • Rate Type                > Select: Fixed Amount
   • Amount                   > Leave blank
   • Expense Account      > Select: Wages & Salaries
   • Exempt from PAYG   > Leave blank
   • Exempt from Super   > Leave blank
   • Reportable as W1     > Select this option
5. Click on [Add]
   

Add the Car Allowance Pay Item to the Employee's Pay Template

1. Go to Payroll > Employees
2. Open the Employee details and click on the [Pay Template] Tab
3. Click on [+Earnings Line]
4. Select/Enter the following details:
   • Earnings Rate > Select: Car Allowance
   • Calculation Type > Select: Enter Rate 
5. Click on [OK]
   
   
   
   è The Earnings Line is added to the Employee's Pay Template
   
   
6. Enter the applicable Car Allowance amount
7. Click on [Save]