Training Session 14 05 02 2021 Payroll 2 reimbursements 12

Summary

The video script discusses employee reimbursements and expense claims, highlighting the use of various software solutions like Smartsheet, Receipt Bank, Conquer, and Expensify for collection and processing. It clarifies that reimbursements should be handled as supplier bills, separate from payroll, and emphasizes the distinction between personal and business travel expenses. The script also explains the 'cents per kilometer' reimbursement for business-related car usage, stressing its importance as a payroll item due to tax implications, and mentions the need to correct previous incorrect practices.

Takeaways

• 📋 Employee reimbursements are similar to expense claims where employees seek reimbursement for business expenses paid with their own money.
• 💻 Various software solutions like Smartsheet, Receipt Bank, Concur, and Expensify are used to manage reimbursements.
• ✉️ Sometimes receipts and expense claims are sent via email for reimbursement processing.
• 💼 Reimbursements should not be processed through payroll but as supplier bills, detailing all lines and accounts.
• 💲 Employees should be reimbursed for approved expenses after the supplier bill is processed and paid.
• 🚗 Cents per kilometer reimbursement is for business-related travel using personal vehicles, excluding commuting from home to office.
• 📝 Employees must provide odometer readings, trip details, and kilometers traveled for business trips via a Smartsheet web form.
• 📅 At the end of the month, total kilometers traveled are calculated and reimbursed at the appropriate ATO rate, either 66 cents or an award-specific rate.
• ⚖️ Cents per kilometer reimbursements should be processed through payroll due to tax implications, not as reimbursements.
• 🔄 There is an ongoing process to correct past mistakes where reimbursements were incorrectly processed.

Q & A

What is the purpose of employee reimbursements mentioned in the transcript?

Employee reimbursements are used when an employee pays for something on behalf of the company with their own money, and they are requesting to be reimbursed for this business expense.

What software solutions are mentioned for handling reimbursements?

The transcript mentions several software solutions for handling reimbursements, including Smartsheet, Receipt Bank, Concur, and Expensify.

How are reimbursements typically processed according to the transcript?

Reimbursements are processed by creating a supplier bill, adding in all the lines, booking everything to the correct account, and then approving and paying the amount back to the employee. It is emphasized that reimbursements should not be processed through payroll.

What is the difference between reimbursements and cents per kilometer payments?

Reimbursements are payments made to employees for business expenses they have personally paid for, whereas cents per kilometer payments are reimbursements for the use of an employee's personal car for business travel after they have arrived at the office. These payments are based on the distance traveled and must be processed through the payroll system because they impact tax.

Why should cents per kilometer payments be processed through the payroll system?

Cents per kilometer payments should be processed through the payroll system because they affect the employee's tax and need to go through the proper channels to ensure compliance.

What is the role of Smartsheet in the reimbursement and cents per kilometer processes?

Smartsheet is used to collect information from employees, such as the details of business trips for cents per kilometer reimbursements, including the speedometer reading and the number of kilometers traveled.

What are the ATO rates mentioned for cents per kilometer reimbursement?

The ATO (Australian Taxation Office) rates mentioned for cents per kilometer reimbursement include a minimum rate of 66 cents, but in some cases, an award may specify a higher rate, such as 78 cents.

What issue is being addressed regarding the processing of reimbursements and cents per kilometer payments?

The transcript mentions that there have been instances where cents per kilometer payments were processed incorrectly as reimbursements, and efforts are being made to correct this and ensure that these payments are processed through the payroll system.

What is the tax implication of incorrectly processing cents per kilometer payments as reimbursements?

Incorrectly processing cents per kilometer payments as reimbursements can lead to tax issues, as these payments need to be handled through payroll to ensure that the appropriate taxes are applied.

Why can't employees be reimbursed for traveling from home to the office and back?

Traveling from home to the office and back is considered a personal expense and is not tax-deductible or eligible for reimbursement by the company.