Allowances are regular, eg monthly or weekly, defined additions or deductions that are paid to an employee. They are selected from a pick list of allowance options which are generated from the Allowances Code Table.
Contents
To view allowance codes
- Go to the following area:
- Latest Menu: Data Management > Code Tables
- Pre 2025 Menu: Choose System > System Administration > Code Tables
- From the Job and Pay group select the Allowances table
- The screen presented will display all the existing allowances codes
- Clicking on the title of the allowance will open that code to show the Allowance Details and the Allowance Rates
To create a new allowance code
| Important: If you use Paylink and wish to include a new Allowance Code, please refer to the Paylink - Updating Payments and Allowances guide, as you will need to discuss any new codes you wish to add with your payroll team/provider. This is essential to ensure the payroll system has been configured for all new elements to be successfully received and processed. |
To create a new allowance code
- Go to the following area:
- Latest Menu: Data Management > Code Tables
- Pre 2025 Menu: Choose System > System Administration > Code Tables
- From the Job and Pay group select the Allowances table
- Click Insert New Record
- On the Allowance Details tab you will need to create the Description and a Code
- Select whether it is an allowance or a deduction from the Type and what the Pay Basis is
| Note: Reducing balance loans can be recorded as an Allowance but the balance won’t reduce so this should be processed via your Payroll. Statutory payments also tend to be processed via Payroll, as specific rules can usually be set up in the Payroll system |
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Self-Service Restriction will enable you to select whether there are any restrictions on access to this code. This is useful if employees and managers may be entering information into the Allowances page. The options are:
- HR only – only HR type users will see the code in the dropdown field
- Read only, except HR – only HR type users can insert or amend this code but other users can view it as read only
- No restrictions – any user with access to the page and field can select the code when inserting/amending an allowance
- Include in Total Pay and Is Bonus – are used for reporting purposes to identify if the allowance should be included
- Fixed Amount – If an allowance code is configured as a fixed amount then the amount will not be FTE (full time equivalent) adjusted, ie if the allowance amount is £500, someone who has an FTE of 1 will get £500as will someone who is part time and has a FTE of 0.25. If the code is not configured as a Fixed Amount then the value will be FTE adjusted, so the example of 0.25 FTE would receive a quarter of the full allowance amount (£125)
| Note: An Allowance does not necessarily need a value, for example where each employee could receive a different amount for the same Allowance. |
- From the Payment Type, select whether the Allowance is an amount or a percentage (of employee’s pay)
- Click Update
- Having updated the record, click Edit on the pop-up box to go into the Allowance Rates tab
- Remember if the Allowance Rate will be variable per person, the tab can be left empty
- To add an Allowance Rate click Add new record
- Enter the date that the allowance rate is to be effective from and then enter either an Amount, if the amount is fixed, or a Percent, if the value is being calculated as a percentage of salary. Select the Currency and click in the Allow rate to be changed? column to amend as required (see note below) and then click Save changes
| Note: If the option to Allow rate to be changed? is selected then when an allowance of this type is recorded against an employee the amount or percentage can be changed on a case by case scenario as required (further restrictions can also be applied per User Role – see note below). If an allowance code is set up with a percentage value of 0 then the required percentage value can be recorded when entering an allowance of this type for an employee. |
- Once a new rate has been saved, you can click Cancel changes to undo or click Delete in the specific row to remove it
- An Update Allowances button will also appear next to the rate once saved, which can be used to insert new Allowance records for any people currently on the allowance, effective from the date of the new rate
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Note: There are further restrictions that can be applied per User Role to control whether a person assigned to the User Role can edit the Allowance Amount of their Own or Subordinates’ record (if applicable). An additional control can also prevent the user from seeing Future Allowances if necessary. This is controlled via:
For more information on User Roles please refer to the related learning content. |
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