Add Allowance Type
What is an Allowance?
An Allowance is an amount given to employees as part of the compensation and benefits package. These are additional benefits companies provide their employees. However, not all employees are given the same set of allowances. The set of allowances for Employee A may be different from the one for Employee B.
System-Defined Allowance - De Minimis
De Minimis are allowances with relatively small values given to employees on top of their basic salary. Due to being of small value, this allowance is classified as non taxable. Since withholding tax is not deducted from de minimis, these are considered as addition to an employee’s take home pay. Some of these allowances are as follows:
Clothing Allowance
Rice Subsidy
Laundry Allowance
Medical Cash Allowance to Dependents
Actual Medical Assistance
Add Allowance Types
To add an Allowance Type:
1, From the Top Navigation Bar, click Settings > Company Payroll Settings > Allowance Types.
2. Click Add Allowance Type.
3. Enter Allowance Type Name.
4. Set to Fully Taxable by ticking on the toggle switch.
If the item is non-taxable, the switch should be off and the maximum non-taxable amount is specified.
5. Click Add if you would like to add another item.
Repeat steps 2-5 to add more Allowance Types.
6. Click Submit.
Upon clicking Submit, you will see the added Allowance Type appear on the list.