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Covid-19 Employee Supplement

Newbie

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Our company will be paying our employees a monthly allowance for working from home during the pandemic. Please help in confirming if this allowance should be taxable and if it should be considered as OTE. Thank you.

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Most helpful response

ATO Community Support

Replies 0

Hello @GenesysMJA

 

There are some useful tables on our website that should help you to determine if the payment you are making is considered salary/wages, OTE or an allowance.

 

You will also find some useful information on our website about the withholding obligations for allowances. Allowances that are folded in to normal salary/wages are not treated separately for withholding.

 

I hope this helps. Have a great day Smiley Happy

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hello @GenesysMJA

 

There are some useful tables on our website that should help you to determine if the payment you are making is considered salary/wages, OTE or an allowance.

 

You will also find some useful information on our website about the withholding obligations for allowances. Allowances that are folded in to normal salary/wages are not treated separately for withholding.

 

I hope this helps. Have a great day Smiley Happy