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Standard Pay - Allowances

This is where all of the employee's standard pay allowances are entered, both taxable and non-taxable. Allowances entered here do not have to have quantities giving dollar values. These quantities can be added in the Current Pay, so allowances entered here can signify just the ability to be paid an allowance thus saving you time when doing a Current Pay.

To add an allowance for an employee click on Allowances button in the Standard Pay tab. This opens the Allowances window.

This window is where an employee's standard allowances are entered. It displays the allowance code, the description, the units quantity, the rate, the amount and the type.

If no allowances are entered here in the Standard Pay, then every time a pay is created, the employees' allowances to be paid will have to be entered. We recommend that you enter at least the employees' basic allowances or allowances they could receive from time to time, as this speeds up Payroll processing on pay day, as the Standard Pay is copied and becomes the Current Pay. Therefore on pay day you will only need to alter the allowances if they vary from the Standard Pay.

To alter the allowance contained in any wage line, double click on the line concerned and edit the required units/rate or highlight the line concerned and press F5.

To manually add new allowances, press the F4 key or click Add.

Allowance Code If you know the code for the allowance you want to add, enter the code in the Allowance code field and press the Enter key. If you do not know the allowance code or an allowance code is entered that does not exist, press F9 or click Find and a list of available codes will appear. Select the code you require from the list.

If you want to set up a completely new allowance or alter the structure of an existing allowance, press F2 to open the Maintenance menu. Choose Allowances to create the allowance without having to exit from the employee file.

Calculation Method This shows the method of calculation for this particular allowance, as set up in Step Two: Add Allowances.

Units Enter the number of units (number of times) that you would like this allowance to be paid. You can leave the number of units blank so that there is no amount to be carried in to the Current Pay - you can then enter the number of units while processing the Current Pay. This field is not available for allowances that are calculated automatically on the number of hours an employee works.

Rate Enter the rate this allowance is to be paid at if there is not a default rate. This can be used as a fixed amount or a rate per unit.

Amount Enter the amount to be paid for this allowance.

Additional payment relates to Select whether this Allowance payment relates to a single pay period or a number of pay periods.

Determine gross earnings from This property is available when the Additional payment relates to property is set to "a number of pay periods". In this case, specify how the gross earnings should be calculated for taxation. Choose from:

  • this pay - gross earnings are determined from the gross earnings (salary/wages, taxable allowances, additional payments) in the Current or One Off Pay.
  • average gross taxable YTD - gross earnings are determined by averaging the gross taxable earning for the financial year to date over the number of pays received.

Rate Type This property is only available if the calculation method is an Hourly Rate. Enter which pay rate type you want to use, based on the types set up on the Payment setup section of the Payroll Setup window. Normally 1 means ordinary time, 2 means a form of overtime etc. Leaving this field blank will mean the Ordinary Hourly Rate is used.

Wage Rate Code Where you are using Multiple Hourly Rates this field represents the number of the rate that is being used.

Cost Centre Use this field to enter a Cost Centre number if you want to specify a Cost Centre different from the employee's default Cost Centre.

Once you have completed this window click Save or press F10 to save and return to the Allowances window. If further allowances are to be loaded for this employee, click Add or press F4 and repeat the process until all the allowances have been entered.

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