How do I record an employee's Reimbursive Travel Allowance on tax codes 3702 and 3722?
This feature is available on all PaySpace editions.
Tax code 3722 (Travel Reimbursement (Fully Taxable) ) is only applicable where the reimbursement rate used by the employer exceeds the prescribed rate and only in respect of that portion of the reimbursement that exceeds the amount determined by multiplying the prescribed rate by the actual business kilometres travelled.
As a result of the Reimbursive Travel Allowance Non Taxable component calculating on the payslip, the taxable portion will display as Travel Reimbursement (Fully Taxable) which will be included in the Tax submission file.
The Travel Reimbursement (Fully Taxable) (3722) component will automatically appear in the Notes section, once the Reimbursive Travel Allowance Taxable (3702) component is added onto the affected employee's payslip.
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