What is the meaning of other allowance?
Other allowances (allowance type OD) are additional allowances provided to employees that are not specifically itemised or categorised separately. These allowances can include various types of expenses that may be deductible or non-deductible for tax purposes.
When reporting “other allowances,” it is important to provide a description or category of expense for each allowance. These categories assist in helping employees complete their individual tax returns accurately by properly identifying and categorising the expenses associated with the allowances.
In the given context, if there are specific allowances related to overtime meal expenses, they should not be reported as overtime meal allowances in the Single Touch Payroll (STP) system. Instead, they should be reported as “other allowances” (allowance type OD) using the allowance code ND (non-deductible).
Therefore, the meaning of “other allowances” is to include additional allowances that are not separately itemised and require a description of the expense category.
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