Register Allowance and Allowance Rules

Explanation

Use this function to define how the ID of the allowance shall be controlled by specifying the time of period (if an overnight stay is required for the employee to get one kind of allowance) and the priority order in which the system should get the information. You must also specify the period of validity for the Allowance.

The payroll administrator must define what rules should be used for allowances. Rules for allowances can be different for different employees. There are some compulsory rules, which the IRS has stated regarding taxable rules.

When an Allowance Rule is registered, you can make a copy of the registration as a new Allowance Rule using duplicate (F6).

Prerequisites

Before you enter Allowance Rules, the following must have been completed:

• You must have registered Expense Rules before you can enter anything in the Allowances tab.

System Effects

As a result of this entry, the system will automatically select the right allowance depending on entered date and time in the expense form.

Window

Expense Rules

Related Window Descriptions

Expense Rules/Allowances

Procedure

1. Select the Expense Rule for which you want the allowance to be valid.
2. Select New.
3. Define a name and description for the Allowance.
4. Specify how the type of allowance is to be controlled. The Allowance ID is controlled by hours and what priority the rules have for the allowance. All entered allowances must have a priority number.

Note: When entering basic data for allowances, you must use different posting codes for domestic and abroad allowances. Payroll systems require that these two allowances are specified on different posting accounts on the income statement to the IRS.

5. Specify the valid departure and return time period for the allowance.
6. Check Overnight Required if allowance will be generated only if the travel covers a night. Not checked, means that you get the allowance whether you have traveled overnight or not
7. Specify the minimum amount of hours the travel has to cover before the allowances are issued.
8. Specify the To/From dates that are valid for the Allowance ID.
9. Check the Use Last Country if the last country visited is used for the pricing. In Sweden the is the country where you have spent the most hours used for the pricing, then the checkbox should be blank.
10. If only hours after 6 should be calculated you check that checkbox, e.g. used in Sweden.
11. In certain countries, employees are entitled to allowance for short (less than 24hrs) travels overnight. In order to define such an allowance, right click the allowance ID and in enter the definition of an overnight trip in the newly appeared dialog box.
    • Enter time from which an overnight trip can begin in the Night Start field.
    • Enter time before which an overnight trip has to end in the Night End field.
    • Enter the amount of hours requred to consider travel to be an overnight trip.
    • Click OK
    • Make sure that Overnight Required and Short Overnight Trip check boxes are selected.
12. Select Save.