Item 44 - Total salary and wage expenses
Show at label L the total salary, wages and other labour costs actually paid or payable to persons employed in the trust's business, excluding those forming part of capital expenditure or paid for private domestic assistance or which form part of capital expenditure, as they are not deductible.
You can only claim a deduction for a payment made or liability incurred by a trust to an associated person, principal, agent, related entity and/or associate entity if it is incurred in producing assessable income and the ATO is satisfied that the amount is reasonable.
Refer to Total salary and wage expenses on the ATO website.
Item 43 should reflect amounts calculated for tax purposes.
These expenses include any salary and wage component of label E Cost of sales item 5 Expenses - that is, allowances, bonuses, casual labour, retainers and commissions paid to people who received a retainer, and workers' compensation paid through the payroll. Also included are direct and indirect labour costs, directors' fees, holiday pay, locums, long service leave, lump sum payments, other employee benefits, overtime, payments under an incentive or profit sharing scheme, retiring allowances and sick pay. Include any salary or wages paid to an associated person, principal, agent, related entity and/or associate entity here AND at item 44 Payments to associated persons.
These expenses exclude agency fees, contract payments, sub-contract payments, service fees, superannuation, management fees and consultant fees.
Total salary and wage expenses code:
If an amount for wage and salary expense is entered at this item, then a code must also be entered. Select the relevant code from the list provided to the right of label H:
C - all included in the expense component 'Cost of sales'
A - all included in the expense component 'All other expenses'
B - all included in both the expense components 'Cost of sales' and 'All other expenses'
O - other than 'Cost of sales' and/or 'All other expenses'.