If you need to refund expenses to an employee in BrightPay that are not Employee Reimbursement & Refund (ERR) expenses, you can do this by setting up and using an Addition on the employee’s payslip.

Create an “Expense Refund” Addition

1. Open BrightPay and select the relevant employer.

2. Go to EMPLOYER.

3. Click on the Additions Type section.

4. Choose Add to create a new addition type.

5. Give the addition a clear name, for example:

   • Expense Refund (Non-ERR)
   • Employee Expenses Reimbursement

6. Set the tax treatment correctly:

   • If you are reimbursing genuine business expenses (vouched, within Revenue rules), the refund is usually non-taxable:
     • Untick/disable options for Tax, USC, and PRSI so the amount is not subjected to deductions.
   • If the payment should be treated as taxable (e.g. an allowance that does not qualify as a tax-free expense), ensure Tax, USC, and PRSI are ticked/enabled.

7. Save the new addition type.

Apply the Expense Refund in the Pay Run

1. Go to the relevant pay period for that employee (e.g. weekly or monthly payroll).
2. Open the employee’s Payslip for that period.
3. Under Additions & Deductions, select Add, then choose the Expense Refund addition you previously created.
4. Enter the amount you want to refund.
5. Review the payslip:
   • Check that the refund appears under Additions.
   • Confirm that it is being treated correctly (taxable or non-taxable) as per your setup.
6. Finalise the pay run:
   • The refund will be included in the employee’s net pay for that period.

Keep Records and Check Compliance

• Ensure you retain appropriate supporting documentation (receipts, expense claims) in line with Revenue requirements.
• If you are unsure whether a particular expense should be tax-free or taxable, you should refer to Revenue guidance or seek advice from your accountant.