We are paying a one-off relocation allowance to a new employee which has been fully utilised by them. We will deduct PAYG Withholding tax from this payment but do we need to pay SGC on the gross amount? What is it considered for STP2 purposes?
Thank you
Hiya @ArthurBart
Relocation allowances are usually paid to employees to cover the costs of their private expense to move home to another home. Private expenses aren't OTE because they are not earnings in respect of ordinary hours of work so are not OTE and not superable.
For STP2 purposes it's an Other Allowance Type-ND (non-deductible) as per the excellent ATO STP2 Employer Guidance.
Deanne
Hiya @ArthurBart
Relocation allowances are usually paid to employees to cover the costs of their private expense to move home to another home. Private expenses aren't OTE because they are not earnings in respect of ordinary hours of work so are not OTE and not superable.
For STP2 purposes it's an Other Allowance Type-ND (non-deductible) as per the excellent ATO STP2 Employer Guidance.
Deanne
Thank you.
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