Setup Allowances


This video takes you through:

  • Types of allowances
  • Setting up allowances before the pay run
  • Taxable and non-taxable allowances
  • Attaching allowances to the employees' records


Allowances are additions or deductions from the employees' pays. Allowances can be applied before or after tax. It is best to create the allowance records before setting up the employee files, although it is easy to create allowances later if required.

Create An Allowance

  1. Navigate to Setup > Allowances 


  2. Click Add to display the Wizard to appear 


  3. Select Next at the Allowance Wizard's welcome screen 


  4. Choose Standard Allowance or Unit Based Allowance 
    • Standard Allowance - the allowance will be calculated with a monetary or percentage value over a frequency to be set on the next screen. 
    • Unit Based Allowance - the allowance will be calculated by entering the number of units to be paid when each payslip is created. An example of this is travel kilometers where the Amount specified in the setup record should be for each unit (say $0.60 per km). The total Allowance is then automatically calculated on each pay slip by multiplying the number of units for the pay period as entered in the ADJUSTMENTS area of the WAGES dialogue box.


  5. Click Next
  6. Complete the Allowance Details 


    • Description: Enter a description of the allowance
    • Type: Select if it’s a deduction or addition
      • Addition: Select this option if you want the amount to be added to the employee's pay
      • Deduction: Select this option if you want the amount to be deducted from their pay
    • Amount: Enter the allowance amount
    • Minimum: Leave as $0
    • Maximum: Leave as $0
    • Frequency: Select how this allowance is paid (eg Each pay period, Hourly, Each shift, etc)
    • Taxed: Check this box if the allowance is to be taxed
    • Include in Super Calculation: Check if the allowance if super is to be paid on this amount

  7. At the ATO Payment Summary screen, make your selection. We recommend you check with your accountant if the allowances need to be shown on the following:
    • The ATO Payment Summary 
    • Reported in STP 
    • ATO Allowance type (i.e.: car, transport, meals, travel) 
    • If none of the above, leave both options unchecked 

  8. Leave as default because you are using Agrimaster as the accounting system - the allowance account code can be set in Agrimaster. Click Next 


  9. Select Finish to confirm the new allowance created 


  10. The Allowance screen will list the newly created allowance. Click Close to complete the process.


  11. Click close to save 

Optional Next Steps, Depending On Employment Conditions:
Setup Salary Sacrifice Deductions

Setup Additional Superannuation Contribution

Skip And Continue To: Setup Leave Accruals

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