Cash Allowance

AAA

DEFINITION of 'Cash Allowance'

An allowance that is paid out in cash, instead of being reimbursed at a later date. Employers usually give cash allowances to employees in order to cover the costs of, for example, meals and lodging.

INVESTOPEDIA EXPLAINS 'Cash Allowance'

Cash allowances are considered taxable income to the employee, like wages and salaries. The employee can then claim employment-related expenses against the increase in income.

RELATED TERMS
  1. Capital Cost Allowance - CCA

    A yearly deduction or depreciation that can be claimed for income ...
  2. Mileage Allowance

    A deduction of automobile expenses for people using their vehicles ...
  3. Parsonage Allowance

    An allowance designated by a church or other organization for ...
  4. Back Pay

    The amount of salary and other benefits that an employee claims ...
  5. Contingent Commission

    A commission with a value dependent on an event occurring, and ...
  6. Collection Commission

    The percentage of premiums that an agent is owed for collecting ...
RELATED FAQS
  1. Does FINRA make any allowances for people whose first language is not English?

    The Financial Industry Regulatory Authority (FINRA) indicates that if your first language is not English, you may request ... Read Full Answer >>
  2. What happens if a company doesn't think it will collect on some of its receivables?

    The accounts receivable account, or receivables for short, is created when a company extends credit to a customer based on ... Read Full Answer >>
  3. How reliable or accurate is marginal analysis?

    Marginal analysis is designed to show how economic reasoning allows actors to accomplish more by understanding limits on ... Read Full Answer >>
  4. What is the difference between a principle agent problem and moral hazard?

    Principal-agent problems and moral hazards are related in that one gives rise to the other. Principal-agent problems occur ... Read Full Answer >>
  5. How does agency theory propose to deal with the agency problem?

    Agency theory highlights potential problems that may occur when agents and principals have different interests. Principals ... Read Full Answer >>
  6. What are some ways employers can reduce employee turn over?

    Employers can reduce employee turnover through the use of certain hiring practices, management methods, compensation, benefits ... Read Full Answer >>
Related Articles
  1. Budgeting

    How An Allowance Helps Kids Get Money-Smart

    Discover which of these three reward techniques teaches the best lessons about money.
  2. Entrepreneurship

    Get the Best Freelance Rates for Your Work

    Smart strategies for estimating costs, researching fees, pricing projects and getting your rate for a range of clients.
  3. Entrepreneurship

    The Top 5 YouTube Millionaires

    Enterprising content creators have been able to use YouTube to rake in millions each year.
  4. Investing

    What are Preference Shares?

    Preference shares, also referred to as preferred shares, are equity shares that give the shareholders certain rights ahead of common shareholders. For instance, when the corporation declares ...
  5. Retirement

    The Best Retirement Plans For Millennials

    Retirement is decades away, but if you make yourself start saving even a little now, all that time can make your money grow big time. Two smart options.
  6. Budgeting

    Equipping Your Graduate With Wings

    After I graduated from high school, I moved out of my parents' home. Shortly after moving out I realized I wasn't quite as prepared as I thought I was.
  7. Retirement

    Pages From The Bad CEO Playbook

    Excess compensation, golden parachutes, tunneling and IPO spinning make these bad executives even worse.
  8. Savings

    5 Ways To Stunt A Child's Financial Growth

    Personal finance is not covered in schools, so it's up to parents to teach kids how to manage money.
  9. Retirement

    5 Lesser-Known Retirement And Benefit Plans

    These plans aren't widely used, but they fill a specific niche for employees in certain situations.
  10. Insurance

    Trending Toward Asset-Based Management

    Will charging fees instead of commission increase your client base?

You May Also Like

Hot Definitions
  1. Geometric Mean

    The average of a set of products, the calculation of which is commonly used to determine the performance results of an investment ...
  2. Fisher Effect

    An economic theory proposed by economist Irving Fisher that describes the relationship between inflation and both real and ...
  3. Fiduciary

    1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets ...
  4. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  5. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  6. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
Trading Center