Set up employee allowances

Do you need to set up and process fixed allowances (such as phone, km and travel)? The following article will walk you through the process.   

How to set up an allowance

The first step to setting up an allowance is to set up a pay category. You can set up a pay category using the following steps:

1. Go to Settings .
2. Select Payroll Settings.
3. Select Pay Categories (located under Pay Run Settings), Then select Add 
4. Enter the Pay Category Name, then select Add
5. Under Units select Fixed 
6. If the allowance needs to reported separately for STP select the appropriate option from the Payment Summary Classification dropdown.
7. Complete any other relevant fields, then select Save

The allowance can now be applied to an employee, see below for further instructions on how to add to an employee on an ongoing or Adhoc basis

Setting up an allowance for an employee on an ongoing basis

For employees that are entitled to an allowance, you need to update their record.

1. Follow this link to complete the steps in product
2. Select the employee you wish to apply an allowance to. 
3. Select Pay Rates from the left-hand menu 
4. Enter in the allowance Rate and tick the box under the Show in Pay Run 
5. Select Save 

The Allowance will now automatically appear for the employee from your next pay run.

Setting an allowance for an employee on an Adhoc basis 

If you’ve set up an allowance for an employee following the process above it will automatically appear in the pay run, if you need to add the allowance to an additional employee for a particular pay run follow these steps:

1. Follow this link to complete the steps in product
2. Select the New Pay Run button.
3. Select the Pay Schedule and any other relevant field, then select Create 
4. Select the Employee you wish to add the allowance for to open up their record. 
5. Select the Action button and choose Add Earnings 
6. Select the allowance from the drop-down, and add the Units  
7. Select Save 

The allowance has now been applied to the employee. 

_{Content sourced from} Employment Hero