I need to make a tax free payment with in payroll, in line with TD2019/11 for travel and meal allowances. How is this achieved?

Hi martin-clifton, 

To record that allowance in the Payroll system, first we would need to create a pay category for this purpose.

1. Go to the Employees section in your QuickBooks company
2. Under the Payroll Settings tab, select Pay categories
3. Click on the Add button in the top right of the page
4. Enter in the name of the allowance category and click Save
5. Select the 'Fixed' rate unit for the new pay category
6. Tick any of the boxes for PAYG Exempt or Payroll Tax Exempt as required
7. If your allowance needs to be reported separately on employee income statements, also select the 'Allowance' payment classification
8. Once you've setup the pay category, click Save

Now that the pay category has been created, you can add it to an employee's earnings within the pay run. 

1. Open the pay run and click on the employee you want add the allowance to.
2. Click the Actions button and select 'Add Earnings'
3. Select the newly created allowance pay category from the drop-down menu and add the units and rate
4. Click Save

This will allow you to add in the allowance amount that you want to record for this employee. If you want to set it up as a recurring inclusion in the employee's earnings, you can follow this article for more information on how to set that up in the employee settings. Feel free to reply to this post if you have any other questions about setting this up!

-Lucas