17 Adding Allowances
From TrueERP wiki
Adding Allowances
Do you know how to pay an Allowance?
The New Allowance button allows the User to create new allowances that can be linked directly to employee payroll. These can be set up by allocating an allowance to an Employee card to load into their periodic pay by default, or by adding an allowance to a specific pay for the relevant Employee/s.
An allowance is an additional sum of money due to be paid to an employee in their wages either on an on-going basis, or as a one-off payment.
Do you know how to pay an Allowance?
- Select the 'Payroll Tab'
- Select the 'New Allowance' Button
Enter the 'Description' of the new allowance, e.g. 'Travel Allowance'. Select the Expense Account you want the transactions for this allowance to post to. Refer to New Account if you have not already created an account for Allowances, or if you wish to create another account. The ERP default expense account for allowances is 'Gross Wages'.
- Select the tick box to 'Calculate Super on Allowance' if this allowance is to be included in the total gross figure that superannuation is calculated on.
- Select the tick box to make this allowance 'Tax Exempt'.
- Select the tick box to make this allowance 'Payroll Tax Exempt'.
- Select the tick box to make this allowance 'Work cover Exempt'.
NB. Check with your local authorities or your accountant to ascetain when exemptions are allowed.
Enter the value of the allowance, e.g. 35.00. Select the type of the value, i.e. $ or %, e.g. $35.00. Select the basis of the allowance being paid, e.g. 'Pays' i.e. $35.00 allowance will be paid to the selected employee's every pay period.
Select 'SAVE' when allowance details are completed. Ensure 'Active' is ticked to allow this allowance to be used in payroll. (Active will be ticked by default when a new allowance screen is opened). OR Select 'NEW' to open another New Allowance entry screen.
NB: Selecting NEW will automatically save the current entry.
OR Select 'CANCEL' if you do not wish to save this entry.
The newly created Allowance will now be viewable and editable from the Allowance List.
