Allowances and Deductions

Payroll deductions and additions are calculated from salary profile setup and attendance results.

Allowances

Allowances are attached to a salary profile and included when they are active for the payroll period.

Field	Use
Category	Allowance category.
Name	Optional custom name or descriptive override.
Amount	Allowance amount.
Is Taxable	Controls whether the allowance is treated as taxable.
Is Active	Controls whether the allowance can apply.
Effective Date	First applicable date.
End Date	Last applicable date.
Max Untaxable Percentage	Limit used for non-taxable allowance treatment.

If a non-taxable allowance exceeds its untaxable limit, QTO ERP splits it into untaxable and taxable portions.

Benefit deductions

Benefit deductions are attached to a salary profile and apply when active for the payroll period.

Field	Use
Deduction Type	Percentage or fixed amount.
Fixed Amount	Fixed deduction amount.
Benefit Type	Benefit category.
Custom Name	Required when the benefit type is Other.
Rate Value	Percentage rate.
Is Active	Controls whether the deduction can apply.
Effective Date	First applicable date.
End Date	Last applicable date.
Description	Notes shown in the calculation breakdown.

Percentage benefit deductions are calculated on net pay after tax, not on gross salary.

Other deductions

Deduction	Source
Under-hour deductions	Attendance shortage after buffer and overtime compensation.
Income tax	Active income tax year and slabs.
Asset finance deductions	Asset finance agreements where configured. Needs product confirmation for the exact active deduction workflow shown to end users.

Note

Benefit deduction percentage cannot be negative or greater than 100%.