How do I configure a Reimbursive Travel Allowance component?
A Reimbursive Travel Allowance is an allowance which is based on the actual distance travelled for business purposes (excluding private travel). These amounts are normally paid by an employer to an employee by multiplying the actual business kilometres travelled by a rate per kilometre
Step 1: Determine whether the Reimbursive Travel Allowance will be taxed or not, then create the applicable component on company level.
Navigate > Configuration > Payroll > Payroll Config > Payroll Components
Navigate > Configuration > Payroll > Payroll Config > Payroll Components
When to use the Reimbursive Travel Allowance Taxable component (3702): This code is only applicable where the reimbursement rate used by the employer exceeds the prescribed rate, and/or the employee receives any other form of compensation for travel; and only in respect of that portion of the reimbursement that does not exceed the amount determined by multiplying the prescribed rate by the actual business kilometres travelled.
When to use the Reimbursive Travel Allowance Non Taxable component (3703): This code is only applicable where the reimbursement rate used by the employer does not exceed the prescribed rate, and the employee does not receive any other form of compensation for travel; and in respect of the full value of the reimbursement.
Important! This code must not be used together with code 3701, 3702 and/or 3722.
If you reimburse more than the prescribed SARS rate per kilometre, the employee will be taxed on the difference/excess. If no rate is entered, you will get a payroll error “Reimbursive travel allowance requires a rate per km”. To split the taxable and non-taxable portions correctly, you must enter a rate/km.
Note! Do not override the TVLNT tax code as the allocation of the taxable and non-taxable portions will be incorrect.
Note! Do not override the TVLNT tax code as the allocation of the taxable and non-taxable portions will be incorrect.
Step 2: Add the component onto the the employee individually on their Edit Payslip screen or collectively on the Bulk Actions screen.
The Edit Payslip screen -
Navigate > Payroll Processing > Edit Payslip > Allowances
The Bulk Actions screen -
The Bulk Actions screen -
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