Creating a Taxable Wet Weather Allowance Custom Pay Type

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

Updated: October 2024

You provide a Wet Weather allowance of $25 per day for the inconvenience of working outside during rain or snow. 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 entered on timesheet as applicable
 ✅ This is income and taxed as part of gross wages.

Here is an example setup:

S9CPT_WetWeatherAllowance (1)

  • 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/s.
    • Leave the 'Exclude from annual leave calculations' tick box blank as you enter the amounts
  • The timesheet summary displays all taxable allowances together with the standard pay as one combined Gross figure.

Further Resources