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What are flexible benefits, and how can we use them?
What are flexible benefits, and how can we use them?
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Written by XPayroll
Updated over 3 years ago

Flexible benefits are special allowances given to employees which help in saving tax. For example, you may choose to give your employees an "Internet Allowance", which your employees can use to set up a high-speed broadband connection while they're working from home. By making this a flexible benefit, your employees can upload proof of the expense incurred by them and effectively make that part of the allowance tax-free.

To use flexible benefits, you need to set up a custom salary structure for your employees, and choose "flexi" under the Taxable column.

Your employees can upload proof of expenses by going to Reimbursements > Reimburse Flexible Benefits. Please note that XPayroll will not validate the proofs uploaded for flexible benefits, and this must be done internally by your organization.

To view any pending flexible benefits reimbursements, please go to Reports > Reimbursements > Pending Flexible Benefits Requests. Once a reimbursement is approved, XPayroll will automatically update the tax calculation for future payrolls.

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