Payroll Processing > System Items – Allowances > Uniform Allowance

An employer may provide an employee with a uniform, or an allowance to buy such uniform. It will not be taxable, provided that the employee is required to wear the special uniform while on duty and it is clearly distinguishable from ordinary clothing.

To add a uniform allowance to an employee’s payslip:

  1. Go to Employees and select an employee.
  2. Click on Add next to Payslip Inputs.
  3. Select Uniform Allowance under Allowance.
  4. Enter the amount of the allowance.
  5. Click Save.

If the allowance does not meet the criteria of a uniform (i.e. it is a clothing allowance), it is considered a taxable fringe benefit. Add this as a custom item to the employee’s payslip. Read more about creating custom items in the following article:

Payroll Setup > Company Setup > Custom Items

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