Setting up and allocating allowances is crucial for accurate payroll processing and compliance with tax regulations. This guide will teach you the necessary steps to create, manage, and assign allowances to employees. The steps are as follows.
- Navigate to Allowance Section
- Go to Payroll/HR > Administration > Allowance.
- Create a New Allowance
- Click on the New button to initiate the creation of a new allowance.
- Enter Allowance Details
- Allowance Name – Provide a descriptive name for the allowance.
- Type – Select the type of allowance (e.g., travel, meal, housing).
- Amount – Specify the amount for the allowance.
- Frequency – Indicate how often the allowance is to be paid (e.g., weekly, monthly).
- Tax Treatment – Define the tax treatment for the allowance, if applicable.
- Effective Date – Set the start date for the allowance.
- Assign Allowance
- Allocate the allowance to relevant employees or employee classes by navigating to the Employee Master File and selecting the appropriate allowance.
- Save the Allowance Record
- Click the Green Tick to save the new allowance entry.
For more detailed instructions, please refer to the Payroll/HR > Administration > Allowance article.