How do I set up a truck allowance through payroll calculations

I need to set up a payroll calculation that is non taxable.  It is a truck allowance paid out to one of my guys at the beginning of the month.

Any idea how to do it? 

  • Hi Terri
    First of all you should be aware that an allowance is taxable but a reimbursement is not. For reimbursements there must be receipts or backup turned in. So typically these vehicle allowances are taxable. Please check with you tax advisor before setting up. I have worked with several people who set them up as non taxable only to have to redo them as taxable.