How do I correct an employee's Reimbursive Travel Allowance that has been incorrectly captured against tax code 3702 (taxable) instead of tax code 3703 (non taxable)?
For example, an employee travelled 120km in May 2023, but it was incorrectly captured on tax code 3702 (Reimbersive Travel Allowance Taxable) instead of 3703 (Reimbersive Travel Allowance Non-Taxable). However, this mistake was only picked up in August 2023. How would this be corrected in the current open period?
In order to correct this, the following configurations need to be done:
Step 1: Create a correction run linked to the last closed run (i.e. July 2023).
Navigate > Payroll Cycle > Payslip Pay Dates
Step 2: Once created, create a payslip on this correction run.
Navigate > Employee > Payroll Processing > Edit Payslip
Step 3: Add the Reimbursive Travel Allowance Taxable (tax code 3702) component on the payslip and process a negative amount, to reverse the reimbursement amount incorrectly captured.
Navigate > Employee > Payroll Processing > Edit Payslip > Allowances
Step 4: Add the Reimbursive Travel Allowance Non Taxable (tax code 3703) component with the positive amount, so that the reimbursement is captured correctly.
Navigate > Employee > Payroll Processing > Edit Payslip > Allowances
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