Allowance - Benefit Allowance, setup and processing

WHAT IS A BENEFIT ALLOWANCE

Use a Benefit allowance to cushion the effect of taxation raised on a benefit given to an employee.  

WHAT IS A BENEFIT

A benefit is remuneration in kind but with a monetary value. This includes company car use and housing provision for employees. 

BENEFIT ALLOWANCE

When an employee receives a benefit, it increases the taxation payable.  Some organizations then process a benefit allowance to offset the tax paid on the benefit.  This effectively brings the net pay back up to the same as it was before the benefit was received.  The calculation of the allowance takes into account the tax one the benefit received but also the tax on the allowance itself. 

- then go to the Topic Heading 'Allowance - Benefit' for more information how to create a Benefit Allowance.

- then go to the Topic Heading 'Allowances' for more information on 

Click these links:

then go to the Topic Heading 'Allowance - Benefit' for more information on how to create a Benefit Allowance.

- then go to the Topic Heading 'Allowances' for more information on how to process a Benefit Allowance.

TAXATION

For more information about the taxation of benefits.