Create Leave Travel Allowance Element

Leave Travel Assistance (LTA) is an allowance provided to the employees by the employer for their travel expenditure within the country. This allowance is provided as part of the employee's earnings, which is in Section 10.

Use the Elements task to create the LTA element, using the Primary Classification - Allowances and the Allowance Type as Leave Travel Assistance. In the Earnings Rules, select No for all the questions and create the eligibility record for the LTA element.

Note: Set the Product Offering to India before creating the allowance element.

To create the the LTA allowance element:

Navigation: My Client Groups > Payroll > Elements

On the Elements page, select Create.
Complete these fields, as shown in this table:

Field	Value
Legislative Data Group	Select an appropriate LDG
Primary Classification	Allowance
Secondary Classification	Not applicable
Category	Standard

Select Continue.
On the Basic Information page, complete the fields, as shown in this table:

Field	Value
Name	Enter a name, example: Leave Travel Allowance1
Reporting Name	Enter the name that you want to display on reports for this deduction payroll element
Effective Date	Enter an early date so that the payroll element is available for use immediately
Input Currency	Indian Rupee
Should every person eligible for the element automatically receive it?	No
What is the earliest entry date for this element?	First Standard Earning Date
What is the latest entry date for this element?	Last Standard Earning Date An element's latest entry date decides how element entries process after a person leaves from organization or transfers to another payroll. This is before a pay period end date. If you select this date, then you need to enable proration, so the calculation will be correct if a person leaves.
At which employment level should this element be attached?	Assignment Note: Assignments are associated with jurisdictions, which determine the required tax calculations
Does the element recur each payroll period, or does it require explicit entry?	Select Recurring or Nonrecurring
Process the element only once in each payroll period?	Yes
Can a person have more than one entry of the element in a payroll period?	No
Process and pay element separately with other earnings element?	Select one of the options: Process and pay with other earnings Process separately, but pay with other earnings Process separately and pay separately

Select Next. On the Additional Details page, respond to the questions, as shown in this table:

Field	Value
What is the calculation rule?	Flat amount
What is the default periodocity of this element?	Calendar Month
Periodicity Conversion Rule	Select Standard Rate Daily from the list
How do you want the work units to be reported?	Select an option from the list
Is this element subject to proration?	Select Yes or No
Is this element subject to retroactive changes?	Select Yes or No

In the Earnings Rules, respond to the questions, as shown in this table:

Question	Value
Project annual value	Select Yes or No
Allowance Type	Select Leave Travel Assistance from the list
Does this element determine the Employee State Insurance eligibility?	Select No
Does this element contribute to Employee State Insurance computation base salary?	Select No
Does this element contribute to Provident Fund computation base salary?	Select No
Is this element paid every month?	Select Yes only if you've enabled the LTA Monthly Payout option in the Income Tax tax reporting unit. Otherwise, select No.
Does this element contribute to Company Accommodation valuation salary?	Select No

Select Next and verify the information in the Create Element: Review page.
Submit the element information.
On the Element Summary page, update the newly created element details.
In the Element Overview section, select Element Eligibility.
Select Actions and then Create Element Eligibility.
In the Element Eligibility Name field, enter a name for the eligibility record.
In the Eligibility Criteria section, select any criteria to restrict who can pay this deduction. Otherwise, select All payrolls eligible.
Submit the details. All the associated balances, feeds, input values, formulas, and related elements required for payroll processing gets created automatically.

Results:

The custom balances created for the LTA element are added to the balance groups:

IN SOE Earnings balance group with balance category Supplemental Earnings
India Payroll Archive Allowances balance group with balance category: Supplemental Earnings

Following details need to be captured for processing the claims of LTA:

LTA period
From date
To date
Details of bills
Name
Relationship
From
To
Mode of transport

These balances added to the above balance groups can be removed as these are custom balances created. If LTA component need not be displayed in the payslip, you can remove it manually from the balance group India Payroll Archive Allowances balance group.

You can't remove the below information balances from the balance group India Payroll Archive Earnings balance group:

LTA Nontaxable Amount
LTA Taxable Amount.

A base element, retroactive element, and results element are created for this allowance. The related formula for the allowance earnings and allowance calculation are created. A projected balance, taxable and non taxable balances, supplemental earnings balance are created for this allowance element. The results element feeds the balances needed for the allowance amount calculation.