If an employee advises that they have a tax variation on an Allowance, e.g. Car Allowance, you will need to set up:
An Addition After Tax for the Allowance
A Tax Adjustment to withhold the specified variation. Select Amount as the Type.
For more information on setting up Additions, Deductions and Tax Adjustments, see Additions and Deductions.
Once both have been created:
Go to Payroll, Maintenance, Employee, Employees.
Edit the employee.
Select Additions & Deductions.
Click Add.
Select the Addition After Tax allowance.
To change the Amount per Pay, untick Use Default and enter the amount in Amount per Pay.
Click OK to save.
Click Add again.
Select the Tax Adjustment created previously.
To change the Amount per Pay, untick Use Default and enter the amount in Amount per Pay. You will need to manually work this out as an amount based on the Allowance amount and the Tax Variation.
Click OK to save.
Click OK to save the changes to the employee.