If you are adding a custom allowance (see: Custom Allowances), you need to select an allowance type that will affect payslip calculation and/or tax reporting. Make sure to check all available types and select the type that fits your allowance best.
| Allowance | Explanation and Use Case |
|---|---|
| Basic |
A basic allowance is when an employee has multiple basic rates and will have a top-up of basic allowance to cover the difference. This may impact Social Security Calculations |
| Director's Fees |
This allowance is selected when the allowance reflects Director's Fees which are to be reported as such in the FS3 and FS7 |
| Multiplier |
Multiplier allowances are used when you need to insert an amount with a multiplicable (e.g. €1.95 per night shift). In the advanced setting, you can set a default rate. This can be overridden in the Salary Details. |
| Deduction |
A deduction is used when the allowance is always to be included as negative (e.g. Advanced Payment) |
| Assets |
Assets are a type of non-cash Fringe Benefit where assets are given to the employee |
| Car FBV |
Car FBV denotes Car Fringe Benefits (separate from car allowance). This will be reported under Cat 1 C5 in the FS3. |
| Car Allowance |
Car Allowance is for car allowances that are 50% non-taxable for the first €1170 non-taxed. However, we recommend using the pre-existing Car Allowance instead of adding a custom one. |
| Share Option |
Used when an allowance needs to denote giving Shares. This option will have this allowance deducted separately, at a rate of 15% |
| Commission |
A commission is a percentage, saved for each employee in their Job & Salary rates. When inputted into the Payroll, Buddy will calculate the percentage of the inserted amount. (e.g. if the commission is set as 10% and you input €500, Buddy will create a commission of €50) |
| Cash |
Cash is the most common type of allowance. This will increase the gross or take-home pay by the specified amount |
| Hourly |
An hourly rate is set for hourly allowances, and the rate needs to be set per employee in their Job & Salary details (e.g. €0.48 per hour). |
| Daily |
A daily rate using a default rate of the employee's wage based on working days. |
| Hourly Deduction |
Similar to an Hourly allowance, however it is always considered as a deduction. |
| Daily Deduction |
Similar to Daily allowance, however it is always considered as a deduction. |
| Other (Fringe) |
The type Other is used for any other Fringe Benefit that is not paid in cash. This is generally taxed but does not increase the take-home pay |
| VOPS Employer |
Voluntary Occupational Pension Schemes contributions that are to be made by the employer. These do not impact payslips. |
| VOPS Employee |
Voluntary Occupational Pension Schemes that are contributed for by the employee; these are post-tax deductions |