An employee employed in one locality to work in another, or sent other than at their own request from their usual locality to another locality for employment which can reasonably be regarded as permanent, involving a change of residence must be paid travelling time and reasonable expenses whilst necessarily travelling between such localities.
The rate of pay for travelling time will be ordinary rates, except on Sundays and public holidays when it will be paid at a rate of 150% of the ordinary hourly rate.
The maximum travelling time to be paid for will be 12 hours out of every 24 or when a sleeping berth is provided by the employer for all-night travel, 8 hours out of every 24.
Payments should not exceed 3 months or 6 months, where the employee is in the process of buying a place of residence in the new locality.
Payments will cease after the employee has taken up permanent residence at the new locality.
Payment at the minimum hourly rate up to a maximum of 12 hours out of each 24 hours, , until permanent residence is taken up at the new location, for up to 3 months
This is a type of expense allowance where we would not expect the employee to claim a deduction for this in their tax return
Withhold tax from this allowance
This allowance forms part of ordinary times earnings
Include this allowance for payroll tax purposes
Include this allowance as part of gross wages