Allowance History File Setup (Monthly)

The configuration of your rate-based allowance depends on the payment rules of the allowance

For example, whether the allowance is the same amount for all employees, or a salary percentage that varies from one employee to the next, or it varies by some other criteria. All allowances, even those that are a flat amount that are payable at the same rate to all eligible employees, require a rate definition for accurate reporting to MyCSP.

The steps described below support mid-period changes, for example, a salary or allowance rate change during the month, including the following scenarios:

• Salary remains fixed for the whole period. Allowance percentage changes mid-period.
• Salary changes mid-period. Allowance percentage remains fixed for the whole period.
• Salary changes mid-period. Allowance percentage changes mid-period

Note: Rate definition setup is required prior to the submission of monthly interface files but not the Allowance Code or cutover Allowance History files.

Allowance Rate Definition Options

Here’s a summary to help you identify the setup required for your allowance:

PAYMENT RULE	EXAMPLE	SETUP REQUIRED
Same flat amount rate applies to all eligible employees.	All employees are eligible for a monthly uniform allowance of £100.	Setup for Flat Amount Allowances
Same rate applies to all eligible employees – salary based.	All employees are eligible for a car allowance that is based on 8% of their regular earnings.	Setup for Single-Rate Allowances
Rate can vary at employee level.	An employee is eligible for a travel allowance that is 3% of their salary but another employee is eligible for the same allowance at a rate of 4%.	Setup for Variable Rate Allowances
Rate can vary by multiple criteria.	Allowance is payable to employees using criteria that includes their grade, their location, and whether they are eligible for the lower or higher rate of payment.	Setup for Value by Criteria Allowances
Mark time allowances	Employee transfers to a new department after a promotion and their basic pay is above the maximum of the new department’s pay range. They receive the	Setup for Mark Time Allowances
	maximum basic pay for their new grade and the amount above that is paid on a mark time basis.