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Assign Benefits & Allowances to an employee

Updated

Available for the following plans: Employment Unlimited, Premium, Platinum
Available for the following User Access levels: Admin

Assigning a recurring allowance (like a Car Allowance) is a two-part process. You must first create the benefit category at the organizational level and then activate the payment line within the employee's specific payroll settings.

This guide outlines the steps to bridge these two areas and ensure your payroll data flows correctly.

Phase 1: Company-wide setup

Before an allowance can be paid to any individual, you must first create the benefit category at the organizational level using the Benefits Management tool.

Step-by-step: Creating the benefit
  1. Navigation: From the left-hand navigation menu, go to Benefits & Perks > Benefits Management.
  2. The Setup: Click the + Create new button and select Create a Benefit.
  3. Benefit Category: Select Taxable Benefit (In Cash). This is a critical requirement for a flat-rate car allowance to ensure the system applies the correct statutory deductions (CPP, EI, and Income Tax) per CRA rules.
  4. Benefit Name: Enter "Car Allowance."
  5. Connect to Payroll: Switch this toggle to ON. This bridge is what makes the allowance visible in the employee's payroll settings later.
  6. Frequency: Select how often this benefit should be applied (e.g., Monthly).

Impact: This creates the "shell" for the benefit, making it a selectable option for every employee in your organization.

Phase 2: Activating the individual payment

Once the category exists, you must enter the specific dollar amount for the employee in their payroll profile.

Assigning the allowance to an employee
  1. Navigate to the employee's Pay details tab.
  2. Scroll to the Additional rates and earnings section.
  3. System Requirement - Check for Pagination: If your organization has multiple income types, they will not all fit on one screen. Look for the page numbers (1, 2, 3) at the bottom right of the Additional Earnings list.
  4. Navigate to Page 2 or 3 to find the "Car Allowance" line.
  5. Enter the Rate (e.g., 250.00) and ensure the "Recurring" box is checked.

System logic summary

The table below summarises the system requirement behind each benefit or allowance type and the reason for the logic used.

System Requirement Reason for Logic
Taxable Benefit (In Cash) Correctly maps the payment for T4 reporting and applies CPP, EI, and Income Tax.
Pagination (Pages 1, 2, 3) Prevents long lists of income types from cluttering the main view; can hide newly created allowances on later pages.
Recurring Checkbox Ensures the payroll engine "fires" this payment automatically in every future pay run without manual entry.
$0.00 Summary Tile The HR "Benefits" summary tile on the profile tracks non-cash records; it does not display live payroll earnings.

 

 

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