Configure After Tax Reimbursements

Configuring After-Tax Reimbursements

Use this process if you wish to reimburse staff expenses through the payroll system. Examples include reimbursement of mobile phone data usage. Important: Always review with your tax accountant to ensure that after-tax reimbursements comply with ATO guidelines.

Step 1: Create a Kind Code for “After Tax Reimbursements”

Step 2: Create Item for Specific Expense

• Set up an item for the expense being reimbursed (e.g., mobile phone usage).

Step 3: Create New Employment Record

• Add a new employment record for the employee if required, and include the reimbursement item.

Step 4: Map Payroll Kind

• Link the new payroll kind to the reimbursement item in the employee’s record.

Step 5: Create Payslip

• Generate the payslip for the employee. The after-tax reimbursement will appear automatically.

Step 6: Approve Payslip

• Approve the payslip.
• The GL posting will reflect the reimbursement as per your payroll setup.