How do I configure the Travel Allowance component, taxed at 20%?

This feature is available on all PaySpace editions.

When the Travel Allowance component is linked to an employee's Edit Payslip or Recurring Payroll Components screen, 80% of the amount will be taxable by default. 

      Navigate > Employee > Payroll Processing > Recurring Payroll Components > Allowances

      

Should an employee's Travel Allowance component be taxed at 20%, add the Travel Business Usage note component to either their Edit Payslip or Recurring Payroll Components screens and specify at which percentage it must be taxed.

      Navigate > Configuration > Payroll > Payroll Config > Payroll Components

      

      

      

      Navigate > Employee > Payroll Processing > Recurring Payroll Components > Notes

      

      

      

If an employee receives a Travel Allowance (tax code 3701) and a Travel Reimbursement reimbursed at a rate not exceeding the prescribed rate in the same tax year, the Travel Reimbursement is automatically allocated to tax code 3702. When the Travel Allowance 3701 is reversed and the YTD = 0, then the 3702 must change to a 3703 tax code.

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