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Recording Allowances

Martha Sykes
Updated
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This guide will show you how to record Allowances for your employees, which are recurring payments and deductions.

 

Contents

Introduction

Allowances are regular amounts paid to an employee usually on a monthly basis. They are selected from a picklist of allowance options which are created as codes in the Allowances code table.

 

To record an Allowance

  • Go to the following area:
    • Latest (left-hand) menu: Job, Pay & Reward > Allowances
    • Pre 2025 (top) menu: Personal Data > Job, Pay & Reward information > Allowances
  • The screen presented will display all the existing allowances for the selected employee
Note: Allowances that are awaiting verification will have a cross in a green circle displayed alongside them in the first column.
  • Click Insert New Record
  • Select from the dropdown list the Allowance
  • Enter the Start Date for the allowance and if known the End Date. The End Date can be left blank to be an open-ended allowance
  • The amount may be pre-populated and may be read-only dependent on the allowance code configuration Record any notes as required
  • If you are linked to payroll you will need to ensure the Payroll Start and End sliders are set accordingly
  • Click Update

Note: Dependant on the configuration settings of the Allowance Code it may be possible to change the amount or percentage value at this point.
  • Job related allowances are attached to the Job and have been allocated to the employee as a result of putting that employee into the role through Job and Pay
  • When an employee's Job and Pay record is changed and they have active allowances, the allowance(s) will be closed off and new record(s) inserted from the Job and Pay From Date. Allowance rates based on pay will be updated in line with any pay changes

 

Work example 1: Percentage

  • In the above example the allowance code has been set up as a percentage and the rate set at 10%
Note: Allow rate to be changed? has not been enabled in this example. When enabled the rate can be changed on an employee by employee basis as required when recording allowances of this type.
  • When applied to an employee the calculation takes place irrespective of their FTE as 10% of their Basic Pay

 

Work example 2: Amount (unfixed)

  • In the above example the allowance code has been set up as an amount which is not fixed

  • When applied to an employee the amount takes their FTE into consideration and the entry displays the Amount as well as the Actual Amount Before FTE Adjust
Note: Allow rate to be changed? has not been enabled in this example. When enabled, the rate can be changed on an employee by employee basis as required when recording allowances of this type. Please see the Allowance Codes guide for more details.

 

Work example 3: Fixed Amount

  • In the above example the allowance code has been set up as an amount which is fixed but the rate has been set to be changeable
  • When applied to an employee, the amount is as per the code table value with no consideration of FTE
  • However, because this code was configured with Allow rate to be changed? as on the actual amount can be overwritten and varied from that set by the code table as required

 

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