Dear Team,
Client is using off cycle reimbursement allowance, some allowance are annual such as LTA & some allowance are monthly such as telephone. Monthly allowance are carried forward each month if the employees are not / partially taken then balance amount carry forward to next month through t-code –(PC00_M40_REMC - Claims Balance Carry Forward ).
Now the company wants to change the pay reimbursement on below way:-
Eligibility amount: - 15000
Applied amount: - 10000
Balance amount: - 15000-10000=5000
Applied amount (10000) paid through off-cycle. These amounts are nontaxable, while given the bills.
Now the balance amount: = 15000-10000=5000 paid through regular payroll & should be taxable.
Kindly suggest!
Thank you in advance,
Regards,
Rakesh