Creating a Non-taxable Uniform Allowance Custom Pay Type

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

Updated: October 2024

You provide a uniform allowance for drycleaning, uniform upkeep or protective clothing per week. 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. 

The custom pay type & timesheet should have the following:

 ✅  Custom pay type created in the non-taxable section
 ✅ Rate: 1 | Per: unit
 ✅ Allowance amount entered in the timesheet

Here is an example setup:

S8CPT_UniformAllowance

  • 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 of the allowance on the applicable day.
  • The timesheet summary displays all non-taxable allowances together as one combined figure.

Further Resources