Reimbursement Pay Items can be used to compensate employees for any employment related expenses they've incurred and will be classed as a non-taxable allowance. You can create any custom reimbursements by clicking on the button.
By default PayHero includes the Expense Reimbursement pay item which can be attached to a type of Work for employees to file expense requests against. You can learn more about setting these up in our Expenses support article.
Creating a Reimbursement Pay Item
Add a new reimbursement and set the name. This name will appear on payslips.
Units - Units can be set to $ for a monetary reimbursement, or Other for unit based reimbursements (e.g. kilometers, meals, etc).
Rate Type - The rate type determines how the reimbursement is paid.
Fixed - The reimbursement amount will remain the same - either a fixed $ rate or a rate per unit (e.g. $20 per meal). The rate is then set directly on the pay item in the Fixed Rate field.
Variable - Select variable to set a different rate for the reimbursement under each employee’s Default Pay tab, or the pay item can be added as a one off during a Draft Pay. A variable rate expense can also be attached to Work options as the expense pay item for employees to submit expense requests against.
Per Hour Worked - The reimbursement will be per hour worked. Useful for things like tool allowances, etc. Set the rate per hour on the pay item and add it to an employee's Default Pay for the allowance to automatically calculate in each pay per hour of work.
Track Balance - Allows you to set an opening balance to be reimbursed when the pay item is added to the employee's Default Pay tab. Learn more here: Track Balance