The first thing you need to do to start using deductions is to setup your deduction categories. This allows you to setup specific deduction categories which can be tailored to the needs of your business.
Setting up a deduction category
- Go to 'Payroll settings' > 'Deduction categories'
- There will already be 3 basic deduction categories for you (Salary Sacrifice Super, Pre-Tax Deduction and Post-Tax Deduction) you can edit any of these by clicking on the name of the deduction category. To add a new deduction category click the green “Add” button in the top right corner
- Enter a name for the deduction category, and select whether it will be a pre or post tax deduction and use the other settings there if required - click save.
- External Id: If an external id is used that has been used before you won't be able to save it if the 'unique external Id' setting is switched on. This setting is located on the Payroll settings > Advanced settings page. See here for more information.
Once you have setup your deduction categories they will now be available to be assigned to employees.
Setting up an indefinitely recurring deduction
Follow these steps setup a deduction that recurs indefinitely:
- Go to the employee record for the employee that you want to create the recurring deduction for and under the 'Pay Run Settings' section click 'Pay Run Inclusions'
- You will then be taken to the following screen:
- Click on 'Add' on the right side of 'Deductions' and complete the following details:
- Select the appropriate deduction category from the drop down list.
- Enter the deduction amount to be applied per pay run. It can be a Fixed amount, a Percentage of Gross earnings or Percentage of OTE.
- Select whether the deduction should be paid manually, to a super fund, a bank account or via a BPAY account. If you are setting up salary sacrifice super or member voluntary, select the super fund option, then select the fund. To pay this deduction directly into another bank account, via the ABA file from the pay run, you'll need to have first set up the bank account on the employee's record / bank accounts page (set the amount to pay as Fixed and $0) so you can choose this bank account from the drop down list and you can add a 'reference' in the Payment Reference field. Additionally, to pay the deduction via a BPAY account, you'll need to have first set up the BPAY account on the employee's bank accounts page (set the amount to pay as Fixed and $0) so you can choose this BPAY account from the drop down list.
- Please note - Child Support Agency (CSA) deductions require the employee's reference number to be entered in the Payment Reference field (when you set up the deduction on the employee's pay run inclusions page).
- Enter any notes if you want the employee to see them on their pay slip.
- Enter the date this inclusion is to commence.
- Choose when this inclusion should cease (a specific end date, never or once a particular dollar amount has been reached).
- Click Save
Now, the next time you process pay run that includes this employee, the deduction will automatically appear:
Checking the status of a deduction
You can quickly see the status of expiring deductions by coming back to the employee Pay Run Inclusions screen.
Once you’ve setup your deductions, a summary of the deductions will be displayed which will include:
- The amount or date at which the deduction will expire
- The start date of the deductions
- Whether or not the deduction has actually expired
- For amount based deductions, the current amount that has been paid
- The payment type setup for this deduction
N.B. A deduction expiry date means "will not be included in pay runs where the pay period starts after this date" and NOT the date paid.
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