The service allowance is a taxable allowance based on years of service. The value of the Service Allowance is:
= Basic × Service Allowance Percentage × Years of Service
To process a Service Allowance create a Transaction Code for the Service Allowance and then to process the value of the service allowance for the employee.
See this link and see the topic heading 'Allowance - Service' for more information about how to create a Service Allowance Transaction Code.
See this link and see the heading 'Allowances' to process the Service Allowance.
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article