How to Add an Employee Allowance in FuseOffice Payroll

Allowances are additional earnings paid to employees - such as transport allowance, housing allowance, risk allowance, or any company-specific benefit.
FuseOffice allows you to create flexible allowance rules that apply automatically every payroll cycle.

Where to Add Allowances

Navigate to:

1. Payroll > Settings > Taxes & Benefits 

2. Click on the Allowances tab

3. Click on Add Allowance

This opens the Add Allowance form.

1. Description (Internal view only) - Optional

This description is only visible inside your organisation staff within FuseOffice.
Use this if you need internal context - for example:
“Allowance for staff who use personal vehicles.”

You might have for example, 2 Allowances with the same name to be shown on the payslip e.g. Transport, but different rate for different staff groups e.g. management and casual, the description allows you to distinquish

2. Enter Allowance Name (Shown on Payslip)

This is the name employees will see on their payslips.
Example: Transport Allowance, Housing Allowance, Airtime Allowance, etc.

3. Select Allowance Type

FuseOffice supports three types:

a) Percentage

A percentage of the employee's Basic Salary.
You’ll also specify:

  • Percentage value (e.g., 15%)

  • Monthly limit (optional)

Example:
15% of basic salary, capped at K2,000 per month.

b) Fixed Amount

A fixed amount added every payroll run.

Example:
K1,200 per month.

c) Custom Amount

Used when each employee receives a different amount.
After creating the allowance, you will assign custom values to employees individually.

Limit / Month

This is the maximum amount if you are using percentage. If the calculated pecentage is higher than this amount, then the limit is used instead of the calculated percentage

4. Taxable / Not Taxable

Choose whether this allowance should be taxed based on your country's payroll laws.

  • YES → Included in taxable income

  • NO → Excluded from tax calculations

(Example: Some organisations offer tax-free lunch allowances.)

5. Deductable / Not Deductable

This controls whether the allowance should included in the gross deductable amount. 

  • YES → any deduction that deducts from gross pay will also deduct from this allowance

  • NO → any deduction that deducts from gross pay will not deduct from this allowance

6. Employees Enrolled

You have two options:

  • All Employees - Applies to everyone automatically.

  • Custom - Allows you to select only specific employees (e.g., managers, drivers, field teams).

7. Save the Allowance

Click Add to save.
If you selected Custom, you will then assign employees and/or amounts.

What Happens Next?

After creation:

  • The allowance will automatically appear on payroll runs

  • You can manage, edit, or delete it anytime

  • For CUSTOM amount allowances, you can open Manage Amounts in to set values per employe

  • If an Allowance amount is 0, it will not appear on the payslip. i.e. you can Enroll an allowance to all employees, but those will 0 will not see it on their payslips