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Create, assign, and view deductions on pay runs

Updated over a week ago

What is a deduction?

Deductions are used to take money from an employee’s gross pay, based on agreements between the business and employee, or if it’s genuinely beneficial to the employee.

Common examples of deductions include:

  • Salary sacrifices

  • Resolving overpayments

  • Repayments of purchases made through the company

Certain industry awards will specify other authorised deduction scenarios.

Create a deduction type

Navigate to Payroll > Payroll Settings > Deduction Types and click the + New button.

When creating a new deduction type, enter the following fields:

  • Name (as it will appear on the payslip)

  • Payroll account (choose from any accounts set up in your journal)

  • Relevant STP category

Use the tick boxes to confirm if the deduction:

  • Reduces tax

  • Should be included in w1 reporting

  • Reduces workcover

  • Reduces payroll tax

Click the Create button once finished to save the new deduction.

Assign deductions to employees

Once a deduction has been created, add it to the profiles of the applicable employees.

  1. Navigate to the Staff tab

  2. Select the employee from the list

  3. Click + Add next to the Deductions section

  4. Select the relevant Payroll deduction type from the drop down list

  5. Enter the Fixed amount to be taken when the deduction is applied

  6. Click the Create button

How deductions appear on pay runs

After assigning deductions to relevant employees, the deductions will appear on their pay runs.

To view the applying deductions:

  1. Navigate to the current pay run through the Run Payroll tab

  2. Select an employee from the list included in the pay run

  3. Scroll down to view which deductions are applying, what account they’re paid out of, and the amount being deducted

How deductions appear on payslips

Employees with deductions applying to their wages will have this clearly visible on their payslips, including the deduction type/name and the amount.

Payslips can be previewed in each employee’s individual pay run summary.

Find the Deductions section under Tax.

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