How to set up a payroll allowance

Modified on Thu, 31 Oct at 10:11 AM

Allowances in payroll can be created for many uses, such as a tool allowance or a bonus payment.


  1. In the Options tab, click Allowance.


  2. Click New.


  3. Give the allowance a Name and Description.
  4. Choose an Allowance Type, and if applicable a Category.
  5. Enter an Allowance Amount or Percentage.
  6. If applicable, enter a Pay Period Min or Max Amount.
  7. Choose a corresponding Expense Account.
  8. Choose your Options for auto applying every pay run, if the allowance is taxable etc.
  9. Click Save.


If the allowance amount will change each time it is used, enter an amount of $1, and use the multiplier in the payrun



Related Articles


How to create and apply an employee bonus


How to set up a payroll deduction


How to apply allowances and deductions in a payrun

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