Let me show you how to set up a pay category for travel allowance in QuickBooks Online.
Go to Employees tab and then select Payroll Settings.
Select Pay Categories.
Select Add.
Enter the Pay Category Name and then select Add.
Under Units select Fixed.
If the allowance needs to reported separately for STP select the appropriate option from the Payment Summary Classification dropdown.
Complete any other relevant fields, then select Save.
For employees that are entitled on the allowance created, you need to open the employee's profile and then select Pay rates and set the rate for the allowance, you can also choose to Show in Pay Run by ticking the box.
You'll then be able to add an allowance on a pay run by selecting Actions button then select Add earnings and simply select the allowance.
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