Custom Allowances

Currently, Buddy has a few public allowances that apply to all companies within that legislation. For example, Car Allowance, Pre-Tax, and Post-Tax are automatically available to all payroll companies in Malta.

Some of these have specific set rules (e.g. Car Allowance is 50% non-taxable, up to €1170 non-taxable amount).

If your company uses other allowances, you can add custom allowances. To do so, follow the steps below;

To add an allowance: 

1. Go to Settings
2. Under Configuration, Click Allowances & Deductions
3. Click Add Allowance
4. Give the allowance a recognisable name - this name will appear on the employees' payslips
5. Select the type of allowance that this is (see Choosing Allowance Type)
6. Indicate whether the allowance is taxable or not
7. You can click the Cog for more Advanced Settings on each pay item.

Repeat steps 2-6 to add as many allowances as you need. Once you are ready, press Save.

Once saved, these allowances can now be selected both in the Salary Details of employees, as well as in payslips from Run Payroll.

Advanced Allowance Settings

By clicking the cog on the right of the allowance, you can open the following menu to access advanced options.

• Fixed Allowances will not be pro-rated in relation to base hours but will be paid based on the input in the Salary Allowance
• Do Not Import... for salaries workers will prevent this item from being uploaded for employees set as full-time with weekly hours.
• Allowance Code and Allowance Alternative Code can be used in uploads to refer to this allowance by a different name or code.
• Preset Amount / Rate (for Multiplier Allowances)
  Available only for multiplier types of allowances, you can set the default rate to be used for each employee. This will be overridden if there is a multiplier rate saved in the employee's salary details.

Importing Pay Item Settings in Bulk

If you are setting up a company and have an exported list from your current system, you can import Pay Items in bulk:

1. Download the Template for UK Pay Item Imports (found at the bottom of this article)
2. Fill in the Details
   • Code and Alt Code are optional codes that you may use when uploading pay items in bulk within payroll
   • The type should be inserted based on Choosing Types for Allowances  
   • Insert Yes or No on the taxability and other settings
3. Save your excel sheet
4. Go to Settings 
5. Under Configurations, Click Allowances & Deductions
6. Click Upload Pay Items
7. Select your File
8. Confirm

After refreshing, you should see that your pay item settings have been imported.

Recurring Allowances

Recurring allowances can be selected for each individual employee on their Salary Details. These can now be ticked and have the recurring amount saved. For more details, check Overtime and Recurring Allowances.

One-Time Allowances

When you are giving one-time allowances (e.g. a Christmas bonus), this is best added during payroll. For more information, see: Adding a One-Time Allowance

Templates