FlexiTime allows you to define expense types that you will reimburse to your employees. Employees can claim expenses on their timesheets, and if the expense is approved it will be included in the employee's pay. You can also bill your clients for expenses that have been incurred on that client's behalf.

 

Create Pay code

Create a Non-Taxable allowance pay code for each expense type that your employees can claim.

 

Select 'Other' for Units, and enter the expense unit to be claimed, eg. Kilometres, $Amount.

Select 'None' for Pay Code Rate is based on Employees Pay Rate, and enter the Default Rate per unit to be reimbursed. 

The example above shows a pay code for claiming mileage cost, the company will reimburse $0.60 per kilometre.

To claim for a monetary amount, e.g. for reimbursing meals, enter $1 for Default Rate. This will pay $1 per unit entered.

 

Add Work Categories

Create Work Categories with the new expense paycodes.    You may wish to create a new Work for Expenses,  and add each of the expense pay codes as a separate category;  or you may want to add expense categories to existing Work.

If you want to invoice the expense amount at a difference rate to the employee's reimbursed rate,   enter the rate per unit in Billing Rate.    In the example above,    the Kilometres expense shall be invoiced to the client at $1.00 per kilometre.

 

Enter Time

The employee can use Time Entry to enter expenses using the Work Categories defined for expense pay codes.  

If your company requires Time Approval,  the timesheet must be approved before it is included in the pay.

 

Create Pay

When you create a pay for an employee who has claimed expenses during the pay period,   the expenses will show on the employee's pay :

In the example shown,  the employee has claimed 50 Kilometres at $0.60 per kilometre,  and has claimed meals of $45.

The employee's payslip will show the reimbursed expenses:

 

Account Integrations

If you're integrating FlexiTime with your accounting system, payroll transactions all flow through as non-GST. Once the transactions are in your accounting system you'll need to indicate that the expenses line is GST inclusive. 

For example, in Xero you would need to edit the invoice, change the tax to be Tax Inclusive and change the tax type on the relevant expense line.