Company will be making a one off payment to an under 18 for work experience, what is the best way to record this payment in the books?
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Hi @akowa01,
Recording a one-off payment to an under 18 for work experience depends on whether they're classified as an employee or doing a work experience placement. If the person is performing actual work for your company and receiving payment, they're generally an employee, and you'll need to treat the payment as wages with the usual employment obligations.
For an employee under 18, you'll need to withhold tax from their pay and report it through Single Touch Payroll. You'll also need to make superannuation guarantee payments if they're 18 or over (or under 18 and working more than 30 hours per week). The payment should be recorded in your payroll system or accounting software as wages expense, just like any other employee payment.
You'll need to keep records of the payment for at least 5 years from when you prepare or obtain them. These records should show the payment amount, the date, and that it relates to work performed. You can keep these records in paper or electronic format.
Consider speaking with a registered tax agent or bookkeeper who can guide you through the recording process for your particular situation.
[edited by moderator 27/1/26]
The $450/month casual eligibility hasn't applied since 1 July 2022, as per the SGAA 😉 Deanne