An employee who sustains damage or loss of their personal effects or equipment due to fire,explosion,foundering,shipwreck,collision or stranding,will be compensated by the employer for the damage or loss by a payment equivalent to the value thereof,not exceeding $4557.
What to pay
compensation payment of up to $4,557.00
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?