Examples of Custom Pay Types
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      Creating a Non-taxable Custom Pay Type for a Kitchen Consumables Reimbursing Allowance

      This example shows one possible set up of a reimbursing allowance custom pay type for kitchen consumables.

      Updated: October 2024

      You reimburse an employee for buying the office milk and coffee as needed. The amount will differ from receipt to receipt. 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)Please note: this reimbursing allowance would not normally be done through payroll, but can be for your convenience.

      Reimbursing allowances are usually non-taxable.

      The custom pay type & timesheet should have the following:

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

      Here is an example setup:

      S2CPT_ReimbursingAllowance

      • 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 to be reimbursed from the receipt where applicable.
      • The timesheet summary displays all non-taxable allowances together as one combined figure.

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