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Adding a Deduction |
  
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Adding a Deduction |
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To add a new deduction, from the main screen, click the 'Pay Types' picture button followed by 'Add'
or
click on the word 'Pay Types' and select 'Add Deductions' from the pull-down menu.
and 
The details of the new deduction will be displayed, as seen below
There is only one tab of information and it's fields are outlined below
Active – is this deduction being used ? Do you want to see it in the list of deductions ? i.e. Yes / No
Type - there are three (3) pay types to select from eg. pay rate, allowance, or deduction. Click on the down arrow and select Deduction from the list.
Description - enter text which best describes the deduction.
Deducted by - Click on the down arrow for a list of payment methods eg. per Hour, per Day, per Kilometer etc. Select the method used for this deduction. If the list does not contain the method you require then you can type over the contents of the field. (e.g. per sheep).
Amount - enter a value for this deduction. It may be expressed as either a dollar value, or a percentage. In the case of the latter, the value is equal to that percentage of the hourly rate in the award the particular employee is linked to. You can also leave the value field empty and set it in the Payrun.
NOTE: If you do not type the percentage (%) sign after the amount (eg. 25%), it will default to a dollar figure (eg. $25.00).
Variable Deduction Amounts from Employees - if the same deduction is to be applied to multiple employees but with varying amounts, tick the box and set the amounts to be deducted in each employee's Pay Types & Cost Centres TAB
IMPORTANT PLEASE NOTE ! ! !
Due to recent changes by the Australian Taxation Office (ATO) The following Deduction Type options has been added.
Deduction Type - The Australian Taxation Office has issued new formats for Payment Summaries for Individual Non Business employees effictive from 1 January 2007. Some payroll deductions may be claimed against tax. Please contact the ATO (www.ato.gov.au) for clarification if a deduction can be claimed. To allow for this new requirement, select either Report this Deduction on the ATO Payment Summary or DO NOT Report this Deduction on the ATO Payment Summary.
Salary Sacrifice (Deduct BEFORE Tax is calculated) - if the deduction is to be deducted from the Gross pay BEFORE the calculation of the tax installment, then click on the 'Deduct Before Tax is Calculated' box.
Report To - The value of this field is used in producing a report on the usage of this pay type. See Tracking Pay Types
If the selection is not on the list of choices, simply type in the field what you wish to have as a heading to show for this allowance on the report.
Deductions –
Superannuation - Tick Box, a cross in the 'Superannuation' box means that the value of this deduction is attributed towards superannuation. It does NOT mean that SGL is calculated on this deduction. If the deduction is a Union payment then click on the 'Union' box.
OTE - Tick Box, a cross in the 'OTE' box means that the value of the deduction is calculated on the Ordinary Time Earnings (OTE) (or Gross for Super) showing in the Employees Pay Envelope at the time the pay is composed.
Click on the 'OK' button to save your deduction details. If you do not wish to save the deduction details then click on the 'Cancel ' button.
Once your new deduction is saved, go to drop-down menu item Pay Types, select Deduction Payee List to enter the Deduction Payee Name and Period Start Date and contact details for the new deduction.
NOTE: If you do not proceed with adding a deduction (Cancel after pressing the 'Add' button), the program will place a BLANK in the Pay Types List. You can edit this with new deduction information at a later stage.