Allowance - Vehicle Allowance, Setup and Processing

Vehicle allowances are amounts paid to an employee in lieu of having the use of a vehicle.    Some employers pay a vehicle allowance to their employees to:

- cover the cost of using their vehicles, or 

- to give a monetary amount to compensate for not providing a vehicle or cost of transport

VEHICLE ALLOWANCE 

See this link and go to the heading 'Allowance - Vehicle' for information about the creation of Vehicle Allowance Transaction Code. 

See this link and go to the heading 'Allowances' to process vehicle allowances in the payroll.

VEHICLE BENEFIT ALLOWANCE

A Vehicle Benefit Allowance counters the tax effect of receiving a vehicle benefit leaving the net pay as it was before processing the vehicle benefit.  Click this link for further information on how to setup and process a Benefit Allowance (see the heading 'Allowance - Benefit')

Note. Employees that use company vehicles for personal use should have a vehicle benefit processed on their payslips. The value of the benefit is stipulated by the Ministry of Finance in the annual, or interim, budget announcements and is set up under ‘Setup’, ‘Tax’, then ‘Existing’.