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How do I setup a Job Allowance?

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Job Allowances

A Job Allowance typically refers to an additional benefit or payment provided to an employee by their employer to cover specific expenses or support their work-related needs. It is an additional amount of money given on top of the employee's regular salary or wages. The purpose of a job allowance is to assist employees with costs or requirements that are directly related to their job responsibilities.

Job allowances can take various forms depending on the nature of the job and the organization's policies.

Some common examples include:

1. Travel allowance: This is an amount given to employees to cover transportation expenses incurred during work-related travel, such as mileage reimbursement, public transportation costs, or reimbursement for meals and accommodation while away on business trips.

2. Housing allowance: Certain employers, particularly those operating in regions with high living costs, may provide employees with a housing allowance to assist with rental or housing expenses.

3. Meal allowance: This allowance is provided to cover the cost of meals when an employee is required to work during regular meal times or away from their usual workplace. It may involve a per diem rate or reimbursement based on actual expenses.

4. Uniform allowance: Some organizations provide an allowance to employees who are required to wear specific uniforms or work attire. This allowance helps cover the cost of purchasing and maintaining the required clothing.

The specific terms and conditions of a job allowance, including the amount, eligibility criteria, and any limitations or reporting requirements, are usually outlined in the employee's contract or company policy. It's essential to consult your employer or refer to your organization's guidelines for accurate information about the specific job allowances available to you.

How it works?

Setup the job-allowance link for all relevant jobs. A job can be linked to more than one allowance.

When the job allowance link is set up, it can then be generated automatically in the payroll via the Import HR Data button, for those employees who meet the requirements.

 

Setup Steps:

  1. Create the Allowance Code and Link to the Company
  2. Create the Job allowance record.
  3. Import HR data in the cycle changes.
  4. View the imported job allowances.

Step 1: Select New Job Allowance record

Step 2: Enter the Job Allowance Details

Company: Select the company that the job allowance applies to.

Pay Group: Select the pay group for which the allowance will be applied.

Job/ Job Name: Select the job to which the allowance applies. Note that the allowance will be generated for those employees in the selected job.

Allowance Code and Description: Select the Allowance to be linked to the job.

Start Date: Enter the date that the allowance became effective.

End Date: Enter the date from which the allowance no longer applies. If there is no end date, then leave this field blank.

Link Status: Select Active when you wish to activate the job-allowance link.

Apply to: Select whether the allowance is to be applied to Full-time or Part-time employees.

Employee Status: Select the Status in Company  which the employee must be in for the allowance to be applied. E.g. If the allowance is only to be applied to permanent employees, then select the status as permanent.

Length of Service Required: Enter the length of service required and flag if it applied to Days/Months/Years.

Probation Required: Select Yes or No if there is a period of probation required before the employee can get the allowance.

Allowance Amount: Enter the amount of the allowance here. If the amount on the allowance code is set as one (1), then enter the factor that it must be multiplied by for the specific job. Alternately, if the amount on the allowance code is set as one value for all jobs, e.g. 200, then enter 1 or the factor it must be multiplied by for the specific job to which it is linked.

Dollar or Percentage: Flag whether the allowance generated for the employee is a dollar amount or a percentage.

Payroll Factor: Enter the factor by which the allowance will be multiplied when generated in the payroll.

Save the record and enter additional job-allowance links as required.

Step 3: Select Import HR Entries

Navigation: Payroll >> Process Payroll >> Cycle Changes. 

Select Pay Group, Pay Year, and Cycle Number.

Step 4: Verify the Job Allowances have generated for all relevant employees.

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