Accommodation Value Only/Value of Board and Lodgings
(For example Farming)

Summary

When providing accommodation which is not actually paid to the employee, but the value of which needs to be recorded in the payroll for various purposes such as for inclusion in holiday pay calculations, you can set this up as follows. This involves creating the allowance, and then creating a deduction to offset the allowance and therefore prevent it from being included in the net pay.

Step 1 - Create an Allowance

You only need to do this once, since the allowance can be used for any employee.

From the main menu, select Allowances & Extras.

Click on "New" to create a new code, and enter the information as shown below. The code and name given are for example - you can use a different code and name if you want to.

The allowance should be defined as taxable. The highlighted fields in image below (circled in blue) - holiday pay settings and kiwisaver settings - may depend on your situation. You should check with IRD or your accountant if you are not sure.

Click Save then Close when finished.

Step 2 - Create a Deduction

This is to offset the allowance to prevent it from being included in the net pay.

You only need to do this once, since the deduction can be used for any employee.

From the main menu, select Deductions.

Click on "New" to create a new code, and enter the information as shown below. The code and name given are for example - you can use a different code and name if you want to.

Click Save then Close when finished.

Step 3 - Enter into the Employees Record

Under "Enter Current Pay", call up the employee, and click on the Allowances/Extras tab.

Add the allowance for the employee as follows. This example shows an amount of $150, and 1 unit entered. Entering the full amount in the amount column and the units as 1 is the easiest way to do this.

Next click on the Deductions tab.

Add the deduction for the employee as follows. This example shows an amount of $150, and 1 unit entered. Entering the full amount in the amount column and the units as 1 is the easiest way to do this.

Payslip

This result on the payslip will be:

You can see the nett pay is $1000 less $230.31 = $769.69