Reimbursements
Non-Taxable Reimbursements vs Allowances: Paying Staff Back the Right Way
Avoid over-taxing staff by separating taxable allowances from true reimbursements in Schedulaa.
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Allowances vs reimbursements
Allowances (per diems, stipends) are taxable and belong in gross. True reimbursements (receipt-backed expenses) should not increase taxable income.
How Schedulaa treats allowances
Use Travel Allowance or shift premium/bonus for taxable extras. They flow into gross pay, CPP/EI or FICA bases, and T4/W-2 wages.
How Schedulaa treats reimbursements
Use Non-taxable Reimbursement for equipment, uniforms, or travel receipts. It does not increase gross or taxes; it is added to net pay only.
Practical examples
Headsets, uniforms, towels/consumables, parking, small tools. Pay them back without inflating taxable income.
Links
/payroll, /docs#payroll