Examples of Custom Pay Types
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      Creating a Non-taxable Meal Allowance Custom Pay Type

      This example shows one possible set up of a custom pay type for an after tax remote meal allowance.

      Updated: October 2024

      You provide a meal allowance of $15 per day for off-premises work meals and refreshments. Let's break down this example.

      This allowance is:

       ❌  A regular payment I can use system pre-loaded pay types for.
       ✅ I prefer using a custom pay type for clarity on the payslip or/and reporting and tracking purposes.
       ✅  This is a non-taxable allowance, meaning added after the income tax calculation. 

      Info - Blue Block (1)Remember: this is non-taxable for your employee, but could be liable for fringe benefit tax for your business. Check this with IRD.

      The custom pay type & timesheet should have the following:

       ✅  Custom pay type created in the non-taxable section
      ✅ Rate: 1 | Per: unit
      ✅ Amount entered on timesheet as applicable

      Here is an example setup:

      S1CPT_RemoteMealAllowance

      • Create this custom pay type with a recognisable name in the Employee Profile - Pay Types tab and SAVE.
      • Select your recognisable pay type from the dropdown timesheet list.
      • Enter the amount where applicable.
      • The timesheet summary displays all non-taxable allowances together as one combined figure.

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