Examples of Custom Pay Types
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      Creating a Taxable Allowance Custom Pay Type for Housing and Accommodation

      This example shows one possible set up of a custom pay type for housing you provide or an accommodation allowance.

      Updated: October 2024

      You provide accommodation as part of employment (usually due to location). The full value of that accommodation is taxable, so $250.00 per week.
      *If your employee pays you rent, follow this link to the rent deduction article.
      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 before-tax allowance, meaning taxed as part of the employee's gross wages. 

      The custom pay type & timesheet should have the following:

       ✅  Custom pay type created in the taxable section
       ✅ Rate: 1 | Per: unit
       ✅ Allowance amount or value of housing entered on timesheet
       ✅ This is income and taxed as part of gross wages.

      Here is an example setup:

      S3CPT_AccommodationAllowance

      • 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 or the value of the housing in the timesheet.
        • Leave the 'Exclude from annual leave calculations' tick box blank as you enter the amount.
      • The timesheet summary displays all taxable allowances together with the standard pay as one combined Gross figure.

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