Adjusting for a Change in Commuting Allowance During the Payment Term
An employee might change the commuting route after receiving a three- or six-month payment of the commuting allowance. If this happens, the unused portion of the commuting allowance that was paid in advance would require adjustment for the remaining months in the term.
InfoDev documentation general process
To adjust for commuting allowance that has already been paid:
Calculate the amount of the adjustment and enter it into Global Payroll calculations as positive input.
The total amount of the adjustment is the amount that the employee must reimburse the company for unused commuting allowance that was paid in advance at the rate of the previous commuting route.
PeopleSoft delivers two earnings items for entering the taxable and nontaxable portions of the commuting allowance adjustment as positive input.
Enter the employee's new commuting allowance values for the new route on the Commuting Allowance page and process normally for the reimbursed months and continuing onward.
Example of Commuting Allowance Adjustment
In January, you pay an employee 360,000 JPY for a three-month commuting pass. At the end of February, the employee moves and must reimburse the company a value of 120,000 JPY for one month of the pass (March).
To process reimbursement of the advance payment for the month of March in this example:
Enter positive input of the following amounts:
Earning Element
Description
Value in the Example
CM TAX ADJ
Taxable commuting allowance adjustment.
–20,000 JPY
CM NTAX ADJ
Nontaxable commuting allowance adjustment.
–100,000 JPY
The accumulator CM AC ADJUST calculates the total adjustment of –120,000 JPY.
Enter the employee's new commuting allowance values for the month of March on the Commuting Allowance page and process normally.