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)?
This applies to all PaySpace editions.
For example, an employee travelled 120km in May 2024, but it was incorrectly captured on tax code 3702 (Reimbursive Travel Allowance Taxable) instead of 3703 (Reimbursive Travel Allowance Non-Taxable). However, this mistake was only picked up in August 2024.
In order to correct this, the following configurations need to be done:
Step 1: Create a correction run linked to the last closed run.
Related FAQ: How do I create an interim (correction) run?Navigate > Payroll Cycle > Payslip Pay Dates
Step 2: Once created, create a payslip linked to 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
Step 5: Close the interim run.
Navigate > Payroll Cycle > Payslip Pay Dates
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