Enter 0 if you want the allowance to be based on the number of hours worked.If the employee is paid allowances, set them up here. Allowances can be for items such as travel, uniform or mileage. Elite Payroll does not set a limit to the number of allowances that can be entered. An allowance entered here will be added to the employee's pay each pay period.
Note If the allowance is Payroll Tax exempt or WorkCover exempt, you must set this up through the Allowances list.
1 Allowance – Select the allowance name. If the allowance you want hasn't yet been set up, type in the name and then press TAB. Click Setup on the Quick-Add pop-up window to add the allowance to the Allowances List. When you select an existing allowance, Elite Payroll will automatically enter the defaults for the allowance.
2 Enter how the allowance is calculated. The calculation involves three columns:
% or Units – Enter a percentage or a dollar amount per unit. Generally, you will just use % when the allowance is calculated based on wages or a specific pay rate, such as Normal Hours.
Enter 0 if you want the allowance to be based on the number of hours worked.
Based On – The allowance can be based on calculated amounts, such as hours worked, wages, or based on an amount that you input in the amount column, such as kilometres, hours, weeks, or pays.
Allowance based on hours worked – Enter 0 in the % or Units column and select a pay rate from the Based On column, the allowance will be calculated as the number of hours worked for that pay rate times the amount entered in the Amount column. This will be calculated when you process the pay. For details, see How do I pay an allowance based on the number of hours worked?
Amount – If you selected an allowance based on a percentage of a pay item, this field will be calculated and displays the calculated amount of the allowance.
If the allowance is a set dollar amount per pay, or based on a unit such as kilometres, enter the number of units, or amount. The allowance will be calculated as the % or Units column times the Amount column. The actual amount of the allowance will be calculated when you prepare the payroll.
Examples
Allowance of $5 per Normal hours – Enter "0" in the % or Units column, select Normal Hours in the Based On column, and enter "5" in the Amount column.
Mileage allowance of 35 cents per km – Enter 0 in the % or Items column, select Km in the Based On column, and enter 0.35 in the Amount column. When you process the pay, enter the number of kilometres by editing the pay and entering the kilometres in the Allowance tab.
Allowance based on 2% of wages – Enter "2.0" in the % or Units column, select Wages in the Based On column, and leave the Amount column blank.
Allowance of $25 per pay – Enter $25 in the % or Units column, select Pay in the Based On column, and enter "1" in the Amount column.
3 Ex-Tax – If the allowance is non-taxable—to be added to the net after tax is calculated, select Yes in the Ex-Tax column. If it is taxable— to be added to the gross before tax has been calculated, select No. Whether an allowance is tax-exempt or not depends on a number of factors, including the type of allowance, the amount, and the income of the payee. For full details, see Taxation of allowances.
4 Super – Select Yes if you want the allowance to be included in superannuation calculations. Select No if you want the allowance to be excluded from superannuation calculations.
5 Customer:Job – You can assign each allowance to a customer and job. If no customer or jobs exist, type the customer and job name in and then press TAB. When you are prompted to add the customer:job to your lists, click Yes.
6 Class – You can assign each allowance to a class. If no class exists, type the class name in and then press TAB. When you are prompted to add the class to your lists, click Yes. Classes are a method that you can use to track and classify your payroll.
See also
Creating an employee