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How to set up a payroll allowance

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.

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  2. Click New.

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  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.

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



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