Quick question on earnings.

[boris1955]

Dear friends

I would like to enquire how to handle allowance in my earnings (it is a contractual allowance) if I plan to send payslips.

Shall I ask accountant to write in a letter that a specified sum was an allowance for which I was eligible under the terms of the contract?
Or is there a better way to do it?

Thank you very much.

[[iD]]

Dear friends

I would like to enquire how to handle allowance in my earnings (it is a contractual allowance) if I plan to send payslips.

Shall I ask accountant to write in a letter that a specified sum was an allowance for which I was eligible under the terms of the contract?
Or is there a better way to do it?

Thank you very much.

You do not need a letter if it shows up in your payslip (and included in your gross amount) and you have paid tax on it

[boris1955]

Dear iD,

Thank you very much for your reply. I could not answer earlier, sorry.

The thing is that I pay taxes on the allowance, but not fully. For example, if I am given allowance of 1000 usd, 40 usd is tax exempt (i take hypothetical figures here). That's how legislation works in my country.

In a payslip this fact is reflected this way:

1) firstly, allowance is shown as a part of a gross pre-tax pay
2) secondly, it is shown that the gross salary is different from taxable salary by those 40 usd (tax benefit associated with allowance).

Will this tax rebate affect validity of my allowance claim?

Thank you very much again