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

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Allowance v gross earnings

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