Register Allowance and Compensation Rules

Explanation

This Activity can used 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. Use Allowances tab to register different types of allowances, e.g.,  Allowance Whole day Tax-free/tax liable and Allowance Half Day Tax-free/tax liable.

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.

The allowance related tabs -  Allowance Codes, Allowances, Compensations and Default Deductions are only available if Travel Allowance is installed. Using the Allowance Codes user can define expense codes concerning allowances and can be used specify price and connect the expense to Abroad Rule, Wage Code, Report Code, Site and/or Sales Part depending on which IFS components that are installed. (Default Tax Line option can be used to create default tax information to be used with a specified expense code that is connected to an expense rule)

When creating Compensation Rules consider the following;

• The Compensation ID is controlled by hours and the priority of the rules. All entered Compensation Rules must have a priority number. (Note: When entering basic data for Compensation Rules, 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.)
• Use Overnight Required option if compensation needs to be generated only if the travel covers a night. If toggle is off, it means that you get the compensation whether you have traveled overnight or not.
• Specify the minimum amount of hours the travel has to cover before the compensations are issued.
• Use the Use Last Country option if the last country visited is used for the pricing.
• If Only Hours After 6 will be calculated this option is on.
• In certain countries, employees are entitled to compensation for short (less than 24hrs) travels overnight. In order to define such an compensation, use the Overnight Definition button. Make sure that both Overnight Required and Short Overnight Trip  options are activated.

Prerequisites

• A registered Expense Rule should be there in the application

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.

Pages

Expense Rule

Activity Diagrams

BDR for Expense Reporting