> ## Documentation Index
> Fetch the complete documentation index at: https://docs.2cloudnine.com/llms.txt
> Use this file to discover all available pages before exploring further.

# QRG Create Payee Allowances - Payroll

## Purpose

The purpose of this quick reference guide is to step through the process of creating a Payee Allowance of
Record Type Payroll. The intended audience for this document is System Administrators / Standard
Users.

## Steps

### Create a new Payroll Allowance record

The Payroll Payee Allowance record is used to define Allowances that are paid to an Employee within Pay
Batch processing. The record holds general Assignment information, Pay Codes & Rates.

Create a Payroll Payee Allowance by following the steps below:

1. Navigate to the **Payee** record.
   1. To identify a Payee record from
      an Employee record, enter the
      Employee name into the **Global**
      **Search** (see Figure 1).

   2. Select the **Employee** record
      from the suggestions provided.

   3. Open the **Related** tab (see
      Figure 2).

   4. Identify the **Payee** related list.

   5. Select the **Payee** record.

Figure 1

![Screenshot from QRG Create Payee Allowances - Payroll](https://mintcdn.com/2cloudnine-2edf05eb/vTBAnWshh7ncjVOl/images/generated/reference-guides/data-set-up-and-creation/qrg-create-payee-allowances-payroll/qrg-create-payee-allowances-payroll-figure-1.png?fit=max\&auto=format\&n=vTBAnWshh7ncjVOl\&q=85\&s=c42e6d69fda3d21e27bb1d0134ededaf)

Figure 2

![Screenshot from QRG Create Payee Allowances - Payroll](https://mintcdn.com/2cloudnine-2edf05eb/vTBAnWshh7ncjVOl/images/generated/reference-guides/data-set-up-and-creation/qrg-create-payee-allowances-payroll/qrg-create-payee-allowances-payroll-figure-2.png?fit=max\&auto=format\&n=vTBAnWshh7ncjVOl\&q=85\&s=aacd95574fb1db4bbfe64ebffb9fcab7)

2. Click **Allowances** from the tab options (see Figure 3).
3. Click on the **New** button.

Figure 3

![Screenshot from QRG Create Payee Allowances - Payroll](https://mintcdn.com/2cloudnine-2edf05eb/vTBAnWshh7ncjVOl/images/generated/reference-guides/data-set-up-and-creation/qrg-create-payee-allowances-payroll/qrg-create-payee-allowances-payroll-figure-3.png?fit=max\&auto=format\&n=vTBAnWshh7ncjVOl\&q=85\&s=0cb983b1f1d9a13f2095f4d914e814ba)

4. Select **Payroll Allowance** from the available Record Types and click on the **Next** button (see Figure 4).

Figure 4

![Screenshot from QRG Create Payee Allowances - Payroll](https://mintcdn.com/2cloudnine-2edf05eb/vTBAnWshh7ncjVOl/images/generated/reference-guides/data-set-up-and-creation/qrg-create-payee-allowances-payroll/qrg-create-payee-allowances-payroll-figure-4.png?fit=max\&auto=format\&n=vTBAnWshh7ncjVOl\&q=85\&s=964843f3cc9b49785100493ebfe33343)

5. Populate the following required fields, regardless of whether you are using Payee Deduction
   Templates or not (see Figure 5):
   1. **Payee Allowance Name**
   2. **Payee**
   3. **Employee**
   4. **Payment Entity**
6. Populate the following optional fields as required:
   1. To directly relate the Payee Allowance to a specific role, populate the **Assignment** field. If
      the Allowance applies to all Assignments relating to the Payee, the Assignment field
      should be left blank.
   2. To prevent the Status of the Payee Allowance from being automatically updated by the
      Automatic Status Update Scheduled Job, check the **Exclude From Auto Update**
      checkbox.

> [!WARNING]
>
> Timesheet Allowances are generally created by the use of Payee Timesheet Allowance Template Groups, more than by the use of Allowance Templates. Payroll Allowances, however, will utilise Allowance Templates to auto-complete some fields or will create the record from scratch.

Figure 5

![Screenshot from QRG Create Payee Allowances - Payroll](https://mintcdn.com/2cloudnine-2edf05eb/vTBAnWshh7ncjVOl/images/generated/reference-guides/data-set-up-and-creation/qrg-create-payee-allowances-payroll/qrg-create-payee-allowances-payroll-figure-5.png?fit=max\&auto=format\&n=vTBAnWshh7ncjVOl\&q=85\&s=ccab1545dcb21b7b7f4a8f3e8e5dc82d)

> [!CAUTION]
>
> The Pay Batch Event field will be automatically populated upon saving the record, and
> should not be manually entered.

> [!CAUTION]
>
> The Allowance Statistics fields provide data on the usage of the Allowance record
> based on processed Payroll data. Allowance Statistics should never be manually
> entered or overridden.

7. Populate the following required fields, regardless of whether you are using Payee Deduction Templates or not (see Figure 6):
   1. **Effective Date**
   2. **Status**
8. If using the Payee Allowance Template, the **Allowance Template** field becomes a required field (see Figure 6).
9. If the Payee Allowance Template is NOT being used, the following additional fields become required (see Figure 6):
   1. **Allowance Rate Type**
   2. **Pay Code**
   3. **Allowance Rate**
10. To define any required rules and limits that will be used in assessing and determining Allowances payable, populate the following optional fields as required. If left blank, the rule / limit will not apply (see Figure 6):
    1. **Quantity**
    2. **Expiry Date**

Figure 6

![Screenshot from QRG Create Payee Allowances - Payroll](https://mintcdn.com/2cloudnine-2edf05eb/vTBAnWshh7ncjVOl/images/generated/reference-guides/data-set-up-and-creation/qrg-create-payee-allowances-payroll/qrg-create-payee-allowances-payroll-figure-6.png?fit=max\&auto=format\&n=vTBAnWshh7ncjVOl\&q=85\&s=25dc254f6d655d3bfd390c1767272c2a)

11. To define any required rules and limits that will be used in assessing and determining Allowances payable, populate the following optional fields as required. If left blank, the rule/limit will not apply (see Figure 7):
    1. **Based on Quantity Worked**
    2. **Quantity Worked Minimum**
    3. **Quantity Worked Maximum**
12. Click **Save**.

> [!WARNING]
>
> The Status of the record will be automatically updated upon saving the record, based
> on the Effective Date and Expiry Date (see Figure 6).

Figure 7

![Screenshot from QRG Create Payee Allowances - Payroll](https://mintcdn.com/2cloudnine-2edf05eb/vTBAnWshh7ncjVOl/images/generated/reference-guides/data-set-up-and-creation/qrg-create-payee-allowances-payroll/qrg-create-payee-allowances-payroll-figure-7.png?fit=max\&auto=format\&n=vTBAnWshh7ncjVOl\&q=85\&s=7aaf31d1a219f0d9db0bbd9ce2319b7a)

A new **Payee Payroll Allowance** is now created (see Figure 8).

Figure 8

![Screenshot from QRG Create Payee Allowances - Payroll](https://mintcdn.com/2cloudnine-2edf05eb/vTBAnWshh7ncjVOl/images/generated/reference-guides/data-set-up-and-creation/qrg-create-payee-allowances-payroll/qrg-create-payee-allowances-payroll-figure-8.png?fit=max\&auto=format\&n=vTBAnWshh7ncjVOl\&q=85\&s=aefd50a4b1f5e69c3a71f2b490386050)

13. To modify an existing **Payee Allowance** record, open the required record and select the **Edit** button available on the top right side of the page. You can also double-click within fields that need editing, or just click on the pencil icon that appears within fields when hovering with your cursor.
14. When complete, click on the **Save** button.

## Field Descriptions

| Field Name | Description |
| - | - |
| **Allowance Rate** | Defines the rate that will be used when calculating the allowance amount during the Allowance Transaction creation. |
| **Allowance Rate Type** | Defines if the value entered in Allowance Rate is a fixed amount or a percentage of the Payee’s earnings per Pay Period for this Allowance. <ul><li>**Amount** if this option is selected, the Allowance Rate is a fixed amount per Pay Period.</li><li>**Percentage of Gross Earnings** if this option is selected, the Allowance Rate is a percentage of the Payee’s Gross Earnings.</li><li>**Percentage of OTE** if this option is selected, the Allowance Rate is a percentage of the Payee’s Ordinary Time Earnings (OTE).</li><li>**Percentage of Qualifying Earnings** if this option is selected, the Allowance Rate is a percentage of the Payee’s Qualifying Earnings (QE).</li><li>**Rate per Quantity Worked** if this option is selected, the Allowance Rate is applied to the total number of units worked based on the Pay Codes of related Pay Transactions where Contributes to Allowance Qty is ticked.</li></ul> |
| **Allowance Template** | Relates the Payee Allowance Record to an Allowance Template. When populated, it will apply defaults to some fields. |
| **Assignment** | Details if this Payee Allowance Record is specific to an Assignment. |
| **Based on Quantity Worked** | Indicates that the payment of the Payee Allowance considers the quantity of hours completed by an Employee during a Pay Calendar Period. |
| **Effective Date** | The date the Allowance will become effective. Allowances will not be paid before this date. |
| **Employee** | The Employee record this Payee Allowance Record relates to. Must match the Employee of the Payee. |
| **Exclude From Auto Update** | When this box is checked, the record will be skipped by the Automatic Status Update scheduled job. |
| **Expiry Date** | The date the Allowance expires. Payments will not be made after this date. If blank, no expiry date applies. |
| **Payee Allowance Name** | Defines the name for the Payee Allowance. |
| **Payee** | The Payee record this Payee Allowance Record relates to. |
| **Payment Entity** | The Payment Entity this Payee Allowance relates to. |
| **Quantity** | Defines a set number of times the allowance will be paid. If blank, no limit applies. |
| **Quantity Worked Maximum** | If the Allowance is Based on Quantity Worked, this is the maximum number of hours during a Pay Calendar Period that will be considered for the application of this Allowance per hour. |
| **Quantity Worked Minimum** | If the Allowance is Based on Quantity Worked, this is the minimum number of hours during a Pay Calendar Period considered for the application of this Allowance per hour. |

## Further Information

| Document | Document Type | Description |
| - | - | - |
| QRG Create an Assignment - Employee | Task Instructions | How to create an Assignment for autopay Employees |
| QRG Create an Assignment (Temp) | Task Instructions | How to create an Assignment for Timesheet Employees |
| QRG Create Payee Allowances - Timesheet | Task Instructions | How to create Timesheet Payee Allowances |

* First Published: 27th April 2022
* Last Published: 1st July 2026