Summary

Allowance Codes are user-defined. They are set up to reflect your current system or specific requirements.

Careful planning is essential in setting up allowances. Once allowances are committed to the first live pay run, they cannot easily be changed or removed.

Reporting Needs

Reports might include Pay Slips, Cost Centre reports, History Analysis and Taxation requirements.

If insufficient thought is given to the level of categories when designing allowances, reporting may be limited.

For example,

• Ordinary Hours
• Time & a Half Hours
• Double Time Hours
• Penalty 10% Allowance
• Tool Allowance

Legislative Needs

You need to create allowances to monitor payments that are forced on Companies. For example,

• Payroll Tax
• Superannuation
• Workers Compensation
• ACC Premiums

On-costs

Use allowances to calculate additional transactions which add on- costs to the cost of employment.

Accounting Needs

The Accounting Department of any organisation must be involved in the process of creating new allowance codes, especially when there is an interface between PayGlobal and the General Ledger system.

Termination Payment Needs

Some countries require special termination considerations be taken into account when creating termination allowances.

Taxation Needs

Allowances control the taxation calculations for reporting requirements.