Claim types

Claim types are the kinds of expenses employees can ask to be paid back for, such as transportation or training. Each type says whether a claim is a business reimbursement or taxable pay. This guide shows how to set them up.

Before you start

• Owner / Management users and payroll officers can add and change claim types.
• Claims are paid outside payroll and recorded on the Claims page. Taxable ones are then taxed in the payroll (see below).

The two tax treatments

• Business expense reimbursement (not taxed): ordinary expenses for the company's business, with official receipts in the company's name. These aren't compensation: no tax, and they are left out of contributions and the 1601-C.
• Taxable (compensation): claims without proper receipts, or for the employee's personal benefit.

When you aren't sure which applies to an expense, ask your accountant before setting up the type.

Add a claim type

1. Open Company setup and choose Claim types.
2. In the form under the list, type a Code (for example TRAINING) and a Name.
3. Choose the Tax treatment.
4. Optionally type a Limit a claim (₱, blank = none): the most one claim of this type may be.
5. Turn Receipt required on if a claim can't be filed without a receipt.
6. For a taxable type, turn on Counts toward SSS if the claim should count toward the SSS contribution.
7. Click Add claim type.

The list shows each type with its badge (reimbursement or taxable), whether a receipt is required, and its limit.

Change or retire a claim type

1. Click Edit on the type's line.
2. Change what you need. Turn off In use to hide the type from new claims; past claims stay.
3. Click Save, or Close to leave it as it was.

How taxable claims reach the payroll

Once a taxable claim is approved and recorded as paid, it enters the payroll of the period it was paid in as pay already given to the employee ("paid separately"). Sahora taxes it there and doesn't pay it again. A reimbursement doesn't appear in the payroll at all.

Who approves claims

• Claims go to the employee's supervisor, like leave and overtime.
• To send large claims only to the owner and payroll officers, set a peso threshold for Claims under Requests only the owner or a payroll officer decides (see Leave types and who approves).

Approving and paying claims is covered in Claims. Employees file them as shown in Filing a claim.

What can go wrong

• "Enter a name." Type the claim type's name.
• "Choose the tax treatment." Pick one of the two.
• "Enter the limit, e.g. 5000." Type the limit as a number, or leave it blank.
• "Code: letters, numbers or _ (up to 20)." Use a shorter code without spaces.