Tracking expenses that employees have incurred for the company can easily be accomplished by using an earning code to record the employee expenses. Recording the expenses within Avanti enables the employee expenses to be entered directly from Avanti and reimbursed automatically during payroll processing.
Expense Reimbursement Earning Code
The expenses to be reimbursed will be recorded using an earning code, which will allow expenses to be entered as dollar amounts directly for the employees.
The earning code will be setup to record the expense reimbursements as non-taxable dollar amounts that are not income (because the employee is not earning money here, only being reimbursed for the expenses they incurred).
Create a new Earning Code
Canadian Payroll > Employer Payroll Tables > Earning Codesand create a new Earning Code by pressing Insert.
Enter the Code and Full Name to use for the Earning Code.
Earning Datatab and setup the following options:
- Short Name
Enter the Short Name that will appear on the pay statements.
- Tax Group =
99 No Tax
Exclude the earnings from income tax calculations.
- Earning Type =
Should not record the expense reimbursement as income.
Active for Off Cycle
Allows the expense reimbursements to be paid on off-cycle pay runs.
The earning code should not be included on tax slips. The tax slip boxes should be disabled by default so no changes should be required (see below).
Save and close the new expense reimbursement earning code by pressing OK now.
Now that an earning code has been created it can be used by a payroll manager to enter the expense reimbursements directly using a payroll data batch, or the earning code can be enabled on the Self Service Portal to allow managers and employees to enter their own expense reimbursements.