Allowances - Types

Belina Payroll can process any number of taxable allowances such as benefits, shift, normal, service and vehicle allowances.

NORMAL ALLOWANCE

This is a taxable amount which can be a set figure like housing, vehicle or a variable amount such as a cellphone allowance. 

The value of the allowance can be set to a pre-determined amount if this amount will be the same for all, or almost all, those it is being applied to.  Alternatively, the value of the allowance can be entered, or amended, if a tick is placed against 'Manual Edit' and the amounts entered during processing.  

SHIFT ALLOWANCE

This is a taxable amount which which is calculated by the number of shifts worked. The amount is calculated as a percentage hourly rate multiplied by units of basic (days or hours). 

SERVICE ALLOWANCE 

Service allowance allows the employer to reward employees according to years of service. On the Transaction Code, you enter the percentage. On the payslip input, the result will be the percentage of basic multiplied by years of service.  

VEHICLE ALLOWANCE

Use the Normal Allowance category.  The value of the allowance will be taxed as would any other allowance.

VEHICLE BENEFIT ALLOWANCE 

This allowance cushions employees on tax on Vehicle Benefits. If an employee gets a vehicle benefit, they are taxed on it, and their net salary is reduced. To bring the net salary back to what it was before giving the benefit, vehicle allowance will be an amount that covers tax on the benefit so the employee gets the same net salary as before getting the benefit.  

BENEFIT ALLOWANCE 

The benefit allowance works like a vehicle allowance except that it is based on other benefits other than vehicle benefits e.g. Housing Benefit.  

Click these links to:

- Setup Transaction Codes for allowances, 

- See topic to see how to Process Allowances,