Wages and Salaries sometimes include pre-tax deductions, post-tax deductions, tips, work place giving or allowances. To ensure an accurate recording of gross income and tax summary reporting simply add an adjustment when recording work related incomes.
How do I add an adjustment?
When allocating an income from Bank Feeds or the Work Tank, the 'Add Adjustments' button will appear when you select the 'Salary or Wages' category.
You can add one adjustment or multiple to ensure your gross income matches your pay slip. After you save you will see the various income types listed in the Work Tank and Tax Summary.
What do the different adjustments mean?
In TaxTank you can choose from the following income adjustments;
Allowances
Allowance - Amounts are separated from the net income amount and reported in Item 2 (Allowances/Earnings/Tips) in the Tax Summary.
Phone Allowance - Amounts are separated from the net income amount and reported in Item 2 (Allowances/Earnings/Tips) in the Tax Summary.
Uniform Allowance - Amounts are separated from the net income amount and reported in Item 2 (Allowances/Earnings/Tips) in the Tax Summary.
Meal Allowance - Amounts are separated from the net income amount and reported in Item 2 (Allowances/Earnings/Tips) in the Tax Summary.
Travel Allowance - Amounts are separated from the net income amount and reported in Item 2 (Allowances/Earnings/Tips) in the Tax Summary.
Other Allowance - Amounts are separated from the net income amount and reported in Item 2 (Allowances/Earnings/Tips) in the Tax Summary.
Post- Tax Adjustment
Reimbursements - Amounts are separated from the net income amount and excluded from the Tax Summary as they are not taxable.
Advance - Amounts are separated from the net income amount and excluded from the Tax Summary as they are not taxable. Advances can be a negative amount.
Post Tax Deductions Other - Amounts are added to the net income amount and reported as Item 1 income (Salary and Wages) in the Tax Summary.
Pre-Tax Adjustment
Pre Tax Deductions Other - Amounts are excluded from both net income and the Tax Summary (ie. doesn’t increase or decrease net income).
Living Away from Home Allowance (LAFH) - Amounts are separated from the net income amount and excluded from the Tax Summary as they are not taxable.
Tips & Workplace Giving
Tips - Amounts are separated from the net income amount and reported in Item 2 in the Tax Summary.
Work Place Giving - Amounts are added to the net income amount and a donation expense is created. Donation expenses are reported in D9 in the Tax Summary.