Taxable benefits are added to the remuneration before the deductions are calculated and then removed from the remuneration before payment is made. A taxable benefit is not paid on the cheque. What you are probably wanting is just a benefit that is set to be taxed and paid to the employee. An allowance paid on each pay cheque without the need for an invoice should be set up as another income line. Call the income Phone Allowance and you should be good.

Yes, I came to that realization, but unfortunately, much too late.  There is already a Benefit line item that you are unable to change any settings so when adding another Benefit line, this should not be defaulting to do the same thing since vehicle and phone allowances, and the like, are meant to add to an ee paycheque....seems redundant...It's easy to miss, especially when it wasn't physically setup and if emailing the slips, you don't catch it because it doesn't show up, at all, when entering payroll info.

Thanks for your prompt reply, though.

Yes, I came to that realization, but unfortunately, much too late.  There is already a Benefit line item that you are unable to change any settings so when adding another Benefit line, this should not be defaulting to do the same thing since vehicle and phone allowances, and the like, are meant to add to an ee paycheque....seems redundant...It's easy to miss, especially when it wasn't physically setup and if emailing the slips, you don't catch it because it doesn't show up, at all, when entering payroll info.

Thanks for your prompt reply, though.

Good morning again, Dawn. You can verify all settings for each pay under the various tabs on the payroll screen. This should be done whenever a new line is added. If you have multiple people that the same change affects you would only need to verify for one employee as the settings are universal. However, you would have to be sure that the check mark is on the line for each employee in their ledger.

Hi, no, I had tech support remote in and even they verified that this was not true.  Nowhere in the payroll screen did it show that it was deducting the benefit amount back off the cheque.  My case got escalated to level 2 and they still couldn't provide a reason.  I have, since, figured it out, however, still feel having the option to choose 'Benefits' as a separate line item, rather than using what is there, is redundant.

Thanks, again, for your reply.

The line Benefit is for taxable benefit like a portion of the Group insurance premium. You are not giving a taxable benefit but paying a taxable allowance. Taxable allowances are considered as a separate income line. 

By design of the program, if an income amount indicated as Benefit shows at the right side, it is a non-cash benefit that is added to Gross to calculate regular applicable deductions only and not actually paid to the employee.  Therefore it has to be removed from the Net before the final Net is calculated.

Alwyn said:

Taxable allowances are considered as a separate income line. 

Using separate income fields allows users to send the amounts to an applicable T4 box.

Ok, thanks for the clarification.