Reimbursement components are salary elements provided to employees to reimburse specific expenses incurred during the course of their employment. These are typically non-taxable if supported by valid bills or receipts, as per statutory and organizational policies. Examples include Driver Reimbursement, Fuel Reimbursement, Leave Travel Reimbursement, Telephone Reimbursement and Vehicle Maintenance Reimbursement.

Reimbursement components can be configured so that employees can submit claims with supporting documents, which upon approval, will be processed in payroll.

Configuring Reimbursement Components

• Navigate to Settings → Payroll → Salary Components → Reimbursement.

• All default reimbursements will be displayed in the grid. Click the three dots in the Actions column and select Edit.

• A pop-up window will appear showing the default reimbursement which is associated with the claim from reimbursement with valid proof, choose the Calculation Type either Percentage(from Basic) or Fixed Amount .

• Select whether you want to include this earning as a Flexible Benefit Plan (FBP) component. You can also restrict your employees from overriding the FBP amount by checking the Restrict employee from overriding the FBP amount option. Once you do this, they can opt for either the maximum FBP value (specified here) or exclude the FBP component entirely.

• Choose whether the reimbursement component should be considered during unpaid leave.

• For reimbursement allowance approvals in Claim Requests, associate the appropriate Workflow.

• Click Save.

• To add a new reimbursement, click + Add Reimbursement, enter the Earning Name, complete all mandatory fields, and then click Save.
  

Fig: Edit Reimbursement Components

Fig: Add Reimbursement Components

Fig: Default Reimbursement Components