One of our bookkeepers found that a client – “is paying union fees which are required to be allowed on a particular job site… he pays this for himself and his son (it is just himself and his son working at the moment and his wife run’s a few errands and draws a wage also). I allocated this to “other employment exp’s’… I’m not sure if that is the correct way to process… he also pays for fuel and phone etc for his son out of the business… should this be ‘fringe benefits’ in their weekly wages or is it fine to class as other employment exp’s?”
Answer – Union fees necessary for the type of industry, should be claimable, and can be in Other Employer expenses, or a separate account “Union Fees” (preferred) so they are easy to see under employment section (if there is a group in the accounts, and assuming this is a company). The other expenses should be in their expense categories also, with a clear note in the memo so regular ones eg “fuel – son” can be seen easily – create Recurring (MYOB) or Memorised (Quickbooks) transactions so you don’t have to set up each time to speed up data entry.
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