How to Add a One-Time Tax-Free Expense Allowance to a Pay Slip

• Modified on: Fri, 21 Aug, 2026 at 12:23 PM

1. In the system, find wage code 410, called "expense allowance." This code is special: the money you enter under it will not be taxed, and no social security payments will be taken from it.
2. Make a copy of wage code 410. Do this instead of using the original code directly.
   Note: Making a copy means you create a new version of the code just for this payment, so the original stays untouched for next time.
3. Give your new copy a clear name that tells you what the payment is for. For example: "Travel expenses June" or "Client dinner reimbursement."
4. Open the pay slip of the employee who needs to receive the expense allowance.
5. Enter the amount of the expense allowance or claim into your new wage code.
   Result: This amount will be paid out to the employee on their next pay slip, but it will not count as taxable wage.
6. Finish (finalize) the pay run as you normally would.

Note: Because this code is untaxed, only use it for real work expenses — not for regular pay or bonuses, since those need to be taxed normally.

Such an allowance can be entered and processed under wage code 410 ‘expense allowance’. The amount entered will then be paid to the employee. However, this allowance does not concern taxable wage and, therefore, no wage tax and social security premiums will be calculated.