Adding Allowances (Payroll UK)

Allowances that a payee receives regularly, such as car or travel allowances, can be defined on a payee record so that they can be paid automatically each pay period when the payee is processed in a pay batch. A payee's allowances can be added, viewed and modified via the Portal > Payee > Payee Maintenance > Payee Entry > Allowances screen.

To add an allowance to a payee's pay details you must specify the following:

the pay code against which the allowance will be paid
the monetary value of the allowance
a validity start date that defines the date from which the allowance will be paid
an optional validity end date that defines the date on which payment of the allowance will cease.

An allowance that has been added to a payee record can be edited or deleted so long as the payee is not currently included in an open pay batch and the allowance is yet to be applied in a pay batch. Once an allowance has been applied in a closed pay batch, the allowance is locked down and cannot be deleted or edited. The exception to this is the validity end date of the allowance, which can be set or changed to determine when payment of the allowance is to cease.

The validity period of an allowance determines if the allowance is paid when a pay batch is processed depending on the end date of the pay period to which the pay batch corresponds. An allowance is paid in a pay batch if the allowance is valid on the pay period end date of a pay batch, even if the validity start date of the allowance falls part way into the pay period.

How to Add an Allowance

To add an allowance to a payee, follow the procedure below.

How to Add an Allowance
	If you do not have the relevant payee record open on in the Payee Entry screen, use the Payroll > Payee > Payee Maintenance screen to search for and open the relevant payee record.
2.	On the Payee Entry screen, scroll down to the Allowances section or click on the quick link.
3.	Click Add +. The Allowance Details screen opens.
4.	In the Pay Code field, select the appropriate pay code against which the allowance is to be paid. A Tax Type field appears at the bottom of the Allowance Details screen, showing whether allowances paid against the selected pay code are taxable, non-taxable or are partially taxable based on a quantity threshold. A VAT Exempt* field also appears at the bottom of the Allowance Details screen and displays a tick if allowances paid against the selected pay code are exempt from VAT.*
5.	In the Value field, key in the allowance amount to be paid to the payee per pay period.
6.	In the Validity Period Start Date field, select the date from which the allowance is to be paid.
7.	In the Validity Period End Date field, select the date after which payment of the allowance is to cease if necessary. Skip this step if the allowance is to be paid indefinitely during the course of the payee's employment.
8.	Click Save. The Allowance Details screen closes and a new allowance is displayed in the list on the Allowance tab of the Payee Entry screen.

How to View or Edit an Existing Allowance

To view or edit a payee's existing allowance, follow the procedure below.

How to View or Edit an Existing Allowance
	If you do not have the relevant payee record open on in the Payee Entry screen, use the Payroll > Payee > Payee Maintenance screen to search for and open the relevant payee record.
2.	On the Payee Entry screen, scroll down to Allowance section or click on the quick link. The Allowance* tab is activated and displays a list of the allowances that apply to the payee.*
3.	In the list of allowances, click the Edit button next the allowance you need to view or modify. The Allowance Details screen opens, showing the details of the allowance you selected.
4.	If you need to modify the allowance, change the pay code, allowance value, validity start date and/or validity end date as required.
5.	Click Save. The Allowance Details screen closes and any changes you made to the allowance are saved.

How to Delete an Existing Allowance

To delete an existing allowance, follow the procedure below.

How to Delete an Existing Allowance
	If you do not have the relevant payee record open on in the Payee Entry screen, use the Payroll > Payee > Payee Maintenance screen to search for and open the relevant payee record.
2.	On the Payee Entry screen, scroll down to the Allowances section or click on the quick link.
3.	In the list of allowances, click the Delete button next to the allowance that is to be deleted. A confirmation message opens, prompting you to confirm the deleting of the selected allowance.
4.	Click Delete. The confirmation message closes and the selected allowance is deleted.