Allowance - Normal Allowance, Setup and Processing

Modified on Mon, 13 May 2024 at 11:55 AM

An allowance is a taxable amount paid to an employee.  It may be a standard amount paid each period e.g., housing, transport, or vehicle allowance or it may be an amount that varies each period e.g. cellphone allowance.


Regular allowances come through each period and are projected in the Final Deduction Tax calculation of PAYE.

Irregular allowances do not come through each period and entered manually and do not projected in the Final Deduction Tax calculation of PAYE.


FIXED ALLOWANCE

The value of the allowance can be set to a pre-determined amount. The entered amount will then come through automatically to all those employees who are receiving the allowance.   


VARIABLE ALLOWANCE

If the amount of the allowance varies for a few individuals place a tick is placed against 'Manual Edit' which will allow the amount to be changed for selected individuals whilst processing.   If the amount varies for most individuals, then leave the amount blank and enter the amount to be paid to each individual whilst processing.   


Once an amount has been entered manually for an individual this amount will come through automatically each period.


Click these links to:

- Click this link and go to the Topic Heading 'Allowance - Normal' for more information about how to setup a Normal Allowance. 

- Click this link and go to the Topic Heading 'Allowances' for more information about process a Normal Allowance.

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