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  • Employee reimbursements (Australia only)

This information applies to MYOB AccountRight version 19. For later versions, see our help centre.




AccountRight Plus, Premier and Enterprise, Australia only

If you need to reimburse an employee for a business expense, you can include the reimbursement in the employee's pay. The tasks below explain how to set this up and process the pay, as well as how to record the purchase.

Here's what you need to do:


1. Set up a clearing account

Create a liability account (Accounts > Accounts List > Liability tab > New). This account will be used as a temporary holding account for the value of the employee purchase. Make sure the Account Type is set to Credit Card.

Here's our example:
Example liability account setup

This account will be linked to a new payroll wage category we'll create in the next task.

2. Set up a payroll wage category
  1. Create a wage category which you'll use to reimburse the employee (Payroll >Payroll Categories > Wages tab > New). 
    • Select Salary for the Type of Wages.
    • Override the expense account and select the liability account created above. Here's our example:
      Example wage category setup
  2. Assign this wages category to the employee who's being reimbursed (click Employee and select the employee). 
  3. Exempt the wages category from tax calculations (click Exempt and choose PAYG Withholding).
3. Exempt the reimbursement from superannuation

To ensure the reimbursement wages category isn't included in the superannuation calculation:

  1. Go to the Payroll command centre and click Payroll Categories.
  2. Click the Superannuation tab.
  3. Click the zoom arrow next to the Superannuation Guarantee category. The Superannuation Information window is displayed.
  4. Click Exempt. The Superannuation Exemptions window is displayed.
  5. Select the Employee Reimbursement wages category created above.
    Superannuation exemptions window with employee reimbursement wage category selected
  6. Click OK to both the Superannuation Exemptions and Superannuation Information windows.
4. Reimburse the employee

When you process payroll, enter the reimbursement amount on the employee's pay (Payroll > Process Payroll).

Pay employee window with reimbursement wage category listed

This will:

  • reimburse the employee for their purchase, and
  • put the amount into the temporary holding account you created earlier. This will be cleared in the next task.

If you're not sure how to handle reimbursement payments on an employee's payment summary, seek clarification from your accounting advisor or the ATO.

5. Record the purchase

The last thing to do is record a Spend Money transaction to account for the purchase (Banking > Spend Money). This achieves the following:

  • the purchase can be allocated to the applicable expense account
  • the applicable tax code can be assigned based on what was purchased and how it needs to be accounted for, and
  • the Employee Reimbursement Liability account is returned to a zero balance.

If you're not sure which tax code to use, check with your accounting advisor.

Here's our example:

Example spend money for office supplies