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Daria Chebotaieva

Daria Chebotaieva

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About

Employers can pay a distance-based allowance to their employees for work-related travel by private car. Some portions of this allowance may be taxable.

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The car allowance calculation is always based on the rates provided by the government.

e.g. In 2021, the tax fee kilometer rate for cars (including electric cars) equals to NOK 3.50 per km. The max allowance rate is NOK 4.03 per kilometer. The difference between the two rates of NOK 0.53 is taxable, meaning that you're paid per kilometer.

All the rates are usually defined in the Organization Properties. The rates can be set on the following levels:

  • Top level (blue building) - rates to be applied to all the organization units;

  • Employment company level - rates to be applied to the crew employment company;

  • Vessel level;

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Entry Code Setup

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Once the rates are in place we need to create a payment transaction under the Payroll > Entry Codes.

Here what needs to be done:

  1. Under the General tab fill in the entry Name and set it to Allowance.

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  2. Under the Input tab setup the following fields.

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  3. Under the calculation tab define the necessary accounts and accounting dimensions.
    Then create a separate script for the Car Allowance calculation.

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    This is the example of the script that you can create. Click here to learn more about the scripts.

    Code Block
    languagenone
    //Setting Employer
Here you need to add a line for calculating the employer organization e.g. @@ADD:007.
You can check your other other entries for 

//Rate
L23=GB19

//Amount
L61=L22*L23
L21=L61
L67=L21

//Calculation of taxable amount (Fordeling av skattepliktig beløp)
//GB20 = Global rate line 20 for car allowance non taxable rate
//GB19 = Global rate line 19 for max allowance rate
//(GB19-GB20) - taxable part

IF GB19 > GB20 THEN
  L70=(GB19-GB20) * L22
  L69=L67-L70
ELSE
  L70=0
  L69=L67
ENDIF

W81=W81+L70       //Taxable (Skattepliktig) 
L62=L70*P50c      //Employers fee

  4. Setup the fields to be available on the Payslip.

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  5. Set the following EDAG coding.

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Car Allowance (regular)

Once the rates are in place we need to create a payment transaction under the Payroll > Entry Codes.

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  1. The script would be simple:

    Code Block
    //Setting Employer
Here you need to add a line for calculating the employer organization e.g. @@ADD:007.
You can check your other other entries for 

//GB20 = Global rate line 20 for car allowance non taxable rate
L23=GB20
L61=L22*L23

  2. The EDAG coding should be like that:

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