Where an employee is requested to stay on the employer’s premises for the purpose of providing prompt assistance to guests outside of ordinary business operating hours,the following arrangements will apply:
(i) The employee will be paid an amount equal to 6% of the standard weekly rate per overnight stay period;
(ii) This payment will be deemed to provide compensation for the overnight stay and also includes compensation for all work necessarily undertaken by an employee up to an hour’s duration;
(iii) Any work necessarily performed during an overnight stay period by an employee in excess of a total of one hour’s duration must be paid for at the rate of 150%;and
(iv) Time worked in accordance with this provision will not be taken into account for the purposes of hours of work,overtime,leave accruals and the like.
What to pay
$51.75 per overnight stay period
This is a type of expense allowance where we would expect the employee to claim a deduction for this in their tax return
Should you withhold tax?
Do not withhold from this allowancd
Should super be paid on this allowance?
This allowance should not form part of ordinary times earnings
Should payroll tax be paid on this allowance?
Include this allowance for payroll tax purposes
How is it treated on the payment summary?
Show the allowance separately in the allowance box
How should it be reported for Single Touch Payroll?