How to add perks and mark it taxable/tax-exempted

Employers offer various benefits to employees, ranging from small gestures like coffee or birthday celebrations to larger ones like health insurance, paid time off, and flexible work schedules. These benefits, known as perks, aim to keep employees happy and satisfied, leading to higher job satisfaction and retention rates. However, most perks are taxable income and are subject to taxation. 

The reason for taxing perks is that they are part of the overall compensation package, which includes salary, bonuses, and other benefits. Consequently, they are subject to the same tax rules as other sources of income. Nonetheless, some benefits like medical insurance, transportation allowance, or meal vouchers, are tax-exempt as they are deemed necessary for an employee's well-being or help to reduce the cost of living.

In order to add a perk on the Keka Portal, click on the Payroll (1) tab. Under Perks (2), find Add Perk (3) and click on it.

To add a Perk, you have to provide the Name, Description, and Category. 

By enabling the setting which says: �Is this a taxable perquisite as per income tax rules?�, that Perk can be marked as taxable/tax-exempted.

Once done, click Save & Continue to add this perk to the Keka repository.

If you need more support, please refer to the other articles or contact our product experts.