When paying a meal allowance to employees which is not reportable via STP, what is the best way to record this via payroll?

Hi there, jennyw24!

In QuickBooks Online Payroll if a category is added and used on the pay run, it will get reported to the Single Touch Payroll report. How it gets reported is based on how you classify the category. You can use the ATO guidance to learn more about how to classify the allowance here.

Here's how to check and edit the category:

1. Click on the Employee's tab.
2. Click on the Payroll Settings, then select Pay Categories (Located under Pay Run Settings). 
3. Locate and click on the pay category you wish to edit 
4. Choose an option from the dropdown for Payment Summary Classification, then select Save

If you need more information how to track the allowance with our reporting via STP, I would recommend reaching out to your accountant to avoid messing up your books.

Check this link to learn more about: Configuring Allowance settings for STP reporting.

Feel free to post again if you have any other questions. I'll be around to help.