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Allowance

An allowance is an extra amount added to an employee's pay, usually for a regular reason such as travel, phone, meals or housing.

When to use it​

Use an allowance for any regular or one-off extra payment that is not the basic salary — for example, a monthly travel allowance or a one-time relocation allowance.

How to add it​

  1. In the menu, go to Payroll → Payroll Items → Allowance.
  2. Choose the employee (or employees) it applies to.
  3. Pick the type of allowance and enter the amount.
  4. Set the period it covers.
  5. Click Save.

The allowance is added to the employee's pay the next time you run payroll for that period.

tip

For allowances you pay every month, set them up once in Payroll Setup → Allowance so they apply automatically, instead of adding them by hand each month.

note

Some allowances are taxable and some are not. The system applies the correct treatment based on the allowance type, so choose the right type.