What this page is for
A pay item is an allowance or a deduction you add to people's pay, every month through their pay profile or once on a pay run. Its treatment decides how it is taxed:
- Taxable allowance: added to gross pay and taxed.
- Non-taxable allowance: paid on top of net pay without tax.
- Deduction after tax: taken from net pay, such as a loan repayment.
- Pension contribution: taken from pay and, with NSSF, reduces taxable pay up to the cap.
- Staff advance recovery: recovers money lent to the person.
How to…
How to add an item
Press New pay item, give it a name, choose allowance or deduction and the treatment, and press Create pay item.
How to change or retire an item
Open it. Once an approved payslip carries an item its treatment is fixed — Already paid — rename or retire it instead. A rename does not change past payslips. Untick Active to retire it.
Worked examples
A transport allowance
The manager adds Transport allowance, a taxable allowance, and gives each waiter 3,000 a month on their pay profile from January.