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What is an allowance, a reimbursement, or a garnishment

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Allowance

An allowance or an advance is any periodic or lump-sum amount that you pay to your employee on top of salary or wages, to help the employee pay for certain anticipated expenses without having them support the expenses. An allowance or advance is:
  • usually an arbitrary amount that is predetermined without using the actual cost
  • usually for a specific purpose
  • used as the employee chooses, since the employee does not provide receipts
An allowance can be calculated based on distance, time or something else, such as a motor vehicle allowance using the distance driven or a meal allowance using the type and number of meals per day. Nmbr supports the ability to configure one-time and recurring allowances. 
curl --request POST \
     --url https://sandbox.nmbr.co/services/payroll/allowances \
     --header 'Authorization: Bearer <access_token>' \
     --header 'accept: application/json' \
     --header 'content-type: application/json' \
     --data '{
          "work_assignment_id": "01h7e1ayty45hwns4k781sv80e",
          "allowance_type": "automobile_and_motor_vehicle",
          "amount": 10,
          "frequency": "per_month",
          "effective_from": "2023-01-01",
          "effective_to": null
    }'

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Reimbursement

A reimbursement is an amount you pay to your employee to repay expenses they incurred while carrying out the duties of employment. The employee must keep proper records (detailed receipts) to support the expenses and give them to you. Nmbr supports the ability to configure one-time and recurring reimbursements. 
curl --request POST \
     --url https://sandbox.nmbr.co/services/payroll/reimbursements \
     --header 'Authorization: Bearer <access_token>' \
     --header 'accept: application/json' \
     --header 'content-type: application/json' \
     --data '{
          "work_assignment_id": "01h7e1ayty45hwns4k781sv80e",
          "reimbursement_type": "non_taxable_reimbursement",
          "amount": 10,
          "frequency": "per_month",
          "effective_from": "2023-01-01",
          "effective_to": null
    }'

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Deductions

A deduction is an amount you deduct from your employee’s earnings and remit to another recipient such as the CRA. For example, if your employee owes the CRA a sum of money and refuses to pay it, it is possible that the CRA may garnish that employee’s wages. In such a case, the CRA will send you a request - such as a Requirement to Pay (RTP) notice - for you to send the amount owed to the CRA instead of giving it to the employee. You are responsible for deducting the amount specified in the notice and remitting it to the CRA. If you do not comply with the requirements, you may be held responsible for the amounts you didn’t remit. Nmbr supports the ability to configure one-time and recurring deductions. 
curl --request POST \
     --url https://sandbox.nmbr.co/services/payroll/deductions \
     --header 'Authorization: Bearer <access_token>' \
     --header 'accept: application/json' \
     --header 'content-type: application/json' \
     --data '{
          "work_assignment_id": "01h7e1ayty45hwns4k781sv80e",
          "deduction_type": "garnishment_order",
          "amount": 10,
          "amount_type": "percent",
          "frequency": "per_payroll",
          "effective_from": "2023-01-01",
          "effective_to": null
    }'