Allowance v gross earnings

Question

Hi,&nbsp;I need to set up a 'travel allowance' for an employee.&nbsp;This allowance is part of his agreement (and paid reguarly) so it must be included in their annual/holiday pay calculations. For this to occur it looks like the software allocates it to 'gross earnings' opposed to a 'taxable allowance'. Is this correct? Is there a way for it to show under 'taxable allowance' yet still be included in the employees annual/holiday pay calculations?&nbsp;Cheers,

melisa_d · Answer

Hi&nbsp;KaliPPS,&nbsp;
&nbsp;
Thanks for your post. Our Help Article Paying bonuses and dealing with the tax has information on how you would set up staff incentives and how to process&nbsp;the tax on these payments. If this travel allowance is set up as a regular bonus then this must be set up as a gross earning pay code.&nbsp;
&nbsp;
If you're unsure if this is the way it should be set up I'd suggest checking business.govt.nz&nbsp;and&nbsp;employment.govt.nz

Forum Discussion

Allowance v gross earnings

Looking for something else?

Related content

Gross earnings for year to date

YTD gross figures not including allowances

Retained Earning Journal

Rollover error retained earnings figure incorrect

Allowances

Change Retained Earnings account

Retained earnings duplicated prior year earnings

YTD earnings total column on Payslip