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.
Related Articles
How do I change the taxable percentage on an employee’s Travel Allowance component?
This feature is available on all PaySpace editions. 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 ...How is the Travel Allowance component configured?
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 taxable by default. Navigate > Employee > Payroll ...How do I configure the Travel Allowance component, taxed at 100%?
This applies to all PaySpace editions. From 1 March 2024, the 100% taxable options on the following components will output an error message 'Travel tax cannot be 100% for this tax year' if selected: Company Car component - Use of motor vehicle ...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 ...How do I configure the Reimbursive Travel Allowance (taxable and non taxable) claim components to automatically apply the SARS rate per hour?
This feature is available on all PaySpace editions 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 ...