Allowance/Deductions
There are two types of allowances and deductions: Global and Individuals. This screen deals with the global allowances and deductions i.e. applied to every employee.
Allowances
Allowance Name: This is the name of the allowance that shows up in the Payslip
Allowance Amount: The allowance can either be a fixed amount or a percentage of gross salary.
Account Number: Account Numbers are only used if you plan to export your payroll registry data to an external accountant program. If that is the case, then select the appropriate allowance account. Each time a transaction is saved, the account number associated with the allowance will also be saved.
As a general rule of thumb, all allowance are taxable.
Deductions
Deduction Name: The name that shows up in the payslip for the deduction
Deduction Amount: The deduction can either be a fixed amount or a percentage of gross salary.
Deduction Account: Account Number: Account Numbers are only used if you plan to export your payroll registry data to an external accountant program. If that is the case, then select the appropriate allowance account. Each time a transaction is saved, the account number associated with the allowance will also be saved.
Taxable or Non Taxable: The only deduction that is not taxable is Pension. Taxes are calculate after the pension amount is deducted.