How to create and apply Lunch Allowance for your employees in PaidHR

Step 1 - Configure Lunch Allowance Structure

1. Navigate to Payroll, and click the downward arrow to reveal additional options.

2. Click on Payable Types.

3. Click on Create Payable Type.

4. Name your payable type Lunch Allowance and select if employees can apply, or if it can only be applied on behalf of employees by the admin.

5. Select the Tax Mode – if it's a combined or an individual tax mode. This means whether you want this specific allowance to be taxed separately or combined with other payments during payroll processing.

   • Select Individual, since it's going to be taxed separately.

6. Select Yes to configure the Unit rates.

7. In the Unit rate section, select how you would like to configure the unit rates for the chosen group.

8. Choose a group:

   • Paybands

   • Paygrades

   • Custom Groups

9. Select Days as the Unit for the allowance calculation and save.

10. Add Members : Assign the appropriate group( Paybands) to this payable type and specify the daily lunch allowance amount.

11. Click Finish to save.

Once you've completed these steps, your Lunch Allowance structure is set.

Step 2 - Applying Lunch Allowance Days to Employees

1. Navigate to Payroll.

2. Select Changes.

3. Select Bulk Payroll Change.

4. Download the spreadsheet.

5. Fill in the required information:

   • Units: Enter the number of days the employee is eligible for the lunch allowance in this period.

   • Payroll Type: Ensure this column is set to Off-Cycle.

6. Upload the completed spreadsheet.

7. The uploaded records will appear under the To Review tab. Use the Batch Review button to review and then approve the payroll change.