Payroll Processing > System Items – Allowances > Tool Allowance

SimplePay has a built-in item for allowances given to employees for the acquisition of tools for business use. These allowances are 100% taxable. The allowance is reported under code 3713.

To add a tool allowance:

  • Go to Employees and select the relevant employee.
  • Click on Add (next to Payslip Inputs).
  • Select Tool Allowance under Allowance.
  • Enter the value of the tool allowance.
  • Click Save.
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