Canceling an allowance ensures that the employee does not get paid for this allowance. This is useful if the allowance has been set up in error by HR.
This process ensures that the cancelled allowance record:
Is effectively ended in both HR and Payroll
Is searchable in HR with a status of Cancelled
Is searchable in Payroll with a status of Cancelled
An Allowance can be cancelled if all of the following conditions are met.
The Allowance is fully approved, i.e. if using Salary Approvals, it's not possible to cancel an Allowance that's in a status of Outstanding.
The Allowance is visible in Payroll i.e. employee payroll setup has been completed.
An Allowance cannot be cancelled if any of the following conditions are met.
Allowance is Outstanding.
Allowance is not visible in Payroll, i.e. this implies the employee payroll setup hasn't been completed.
If the allowance is fully approved but not visible to payroll, i.e. employee payroll setup has not been completed, then the cancel option is not applicable. In this instance, it is possible to directly delete the allowance from the system.
To cancel an allowance. follow the steps below.
Go to the People Management dashboard.
On the Command Centre widget, click View for the Employees option.
Search for an employee and click View.
📌Note: If the employee has multiple contracts, you need to select the relevant one from the drop-down menu.
Click the Current Salary tab.
Click the Allowances section.
Click the three-dot menu of the Allowance to be edited, then click Cancel.
If the allowance does not meet the conditions required to cancel, the user will be prevented from doing so. If the Allowance does meet the conditions to cancel (i.e. it is fully approved and passed to payroll) then clicking Cancel Allowance will be effective immediately.
⚠️Important: The retrospective taking back of the money for the cancelled allowance only takes place if it's open when the cancellation is made. If an allowance was ended before the cancellation, the system won't claw back the money paid. In this case, the arrears need to be manually calculated and entered as a timesheet entry.