An employee directed by an employer to use a private vehicle during working time will be paid $0.80 per kilometre measured to and from respective sites, in addition to payment for the time travelling at the appropriate ordinary time or overtime rate.
What to pay
$0.80 per km
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?