How to Create Allowance on PaidHR
PaidHR provides default allowances, but you can also create custom ones, such as a lunch allowance.
- From the sidebar, scroll to Compensation.
- Click the dropdown arrow next to Payroll and select Configuration.
- At the top of the page, click Allowances, then select Create New Allowance.
- Enter a name for the allowance.
- Choose the Pay Type:
- Regular (paid during normal payroll cycles)
- Off-cycle (paid outside regular payroll cycles)
- Specify whether the allowance is taxable and whether it should be taxed separately or as part of the total gross pay.
- Select Amortized if the allowance should be paid gradually.
- Choose Yes if the allowance should be tied to employee confirmation.
- Click Save to complete the setup.
