To enter an all-purpose allowance in QuickBooks Online Australia, you generally set up the allowance as a pay category first, then assign it to the employee and, if needed, classify it for STP reporting. QuickBooks Australia says to create the pay category under Payroll Settings, choose Pay Categories , add the allowance name, set Units to Fixed , and save it.

Set up the allowance

  1. Go to Settings.
  2. Select Payroll Settings.
  3. Open Pay Categories under Pay Run Settings.
  4. Select Add.
  5. Enter the allowance name.
  6. Set Units to Fixed.
  7. Choose the right Payment Summary Classification if it needs separate STP reporting.
  8. Save the pay category.

Add it to an employee

For an ongoing allowance, QuickBooks says to go to All apps > Payroll > Employees, select the employee, open Pay Rates , enter the allowance Rate , tick Show in Pay Run , and save. For a one-off or ad hoc allowance, you add it inside the pay run by opening the employee record and using Add Earnings , then selecting the allowance and entering the units.

STP reporting

If the allowance must be reported separately in STP Phase 2, QuickBooks says to edit the allowance’s classification in Pay Categories and pick the correct reporting option. The ATO also notes that allowances need to be identified and reported according to their allowance type for STP purposes.

All-purpose allowance note

An all-purpose allowance is usually tied to how the employee is paid under the award or agreement, so the key question is whether it should follow the same penalty loadings as the earnings it relates to. If you are unsure whether your allowance is truly “all-purpose,” QuickBooks and the ATO both point users toward payroll advisers or the relevant award guidance.

Practical example

If an employee gets a travel allowance every pay run, you would create that allowance as a pay category, attach it to the employee’s pay rate, and let it appear automatically in future pay runs. If the same allowance is only needed for one extra shift, you would add it manually in that pay run instead.

Format you can follow

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<ol>
  <li>Set up the allowance in Payroll Settings &gt; Pay Categories.</li>
  <li>Choose a fixed unit and save it.</li>
  <li>Add it to the employee’s pay rates for ongoing use, or add it in the pay run for a one-off payment.</li>
  <li>Check STP classification if it must be reported separately.</li>
</ol>

TL;DR: In QuickBooks Online Australia, create the allowance as a fixed pay category, add it to the employee’s pay rates, and make sure the STP classification matches how the allowance should be reported.