Employer reimbursed work expenses through wages

Discussion in 'Accounting & Tax' started by Propin, 4th Aug, 2021.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Propin

    Propin Well-Known Member

    Joined:
    7th Mar, 2016
    Posts:
    3,661
    Location:
    Perth
    My husband used to get reimbursed by employer straight to his bank account if he used our money to pay for work expenses. The last item he paid for was repairs to his employers tool. It was reimbursed through his next pay as a seperate item. Won’t it appear on his group certificate at year end and he get taxed on it?
     
    Propin, 4th Aug, 2021
    #1
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,504
    Location:
    Sydney
    No. Many employers use the payroll system to pay reimbursements.
     
    Paul@PAS, 4th Aug, 2021
    #2
    Propin likes this.
  3. Propin

    Propin Well-Known Member

    Joined:
    7th Mar, 2016
    Posts:
    3,661
    Location:
    Perth
    Fantastic, thanks! Great to know. It’s been 22 years since I’ve done payroll, I don’t remember ever doing it.
     
    Propin, 4th Aug, 2021
    #3
  4. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    I think it can be done either way, i prefer to pay my employees direct for any reimburseable items.
     
    D.T., 4th Aug, 2021
    #4
    Propin likes this.
Paying too much CGT or tax – Or not enough ?

Not all tax advisers are property focussed specialists and DIY errors will always cost you. We know property taxes and will advise and get it right. Even a second opinion. Contact us for an obligation free initial consult (conditions apply).