Set up and manage deductions

Deductions and salary sacrifices (non-superannuation) can be set up and applied to employees as needed.

Some examples of deductions include:

  • Processing overpayments
  • Uniforms
  • Union fees
  • Child support payments

Some examples of non-superannuation salary sacrificing include:

  • Salary packaging
  • Novated leases

In this article we will cover: 

  • Creating new deduction types that can be applied to employees. 
  • Applying a deduction to an employee profile. 
  • Applying a deduction to a payslip. 
  • Reporting on processed and unprocessed deductions. 

  If you are looking for information on adding Protected Earning deductions, you can find that here!

Create Deductions

Create a new deduction type

In order to add a deduction to an Employee Profile or payslip, you'll first need to set up a deduction type.

To add a new deduction:

  1. From the main menu, navigate to Payroll Settings > Deductions
  2. Click + Create new.



  3. Select Deduction from the drop-down and enter the following details:
    • Name - Name of the deduction. This will be visible to the employee on their payslip.
    • Method - fixed amount ($) or percentage (%).
    • Deduction Type - Pre-tax (gross) or Post-tax (net).
    • STP Deduction Type - you have the option to choose from:
      • Not reportable
      • Fees
      • Workplace Giving
      • Child Support Deductions
      • Child Support Garnishees 
    • Pay to Another Account
      • Yes - This will allow you to specify another bank account to pay the deduction into. 
      • No - The value will be withheld from the employee's pay but will not go anywhere. 
        Please note: A deduction that is specified to pay into another bank account cannot be added to the timesheet/payslip manually. If the timesheet/payslip has already been generated for the employee, the deduction will need to be applied to the Employee Profile and the pay cycle will need to be reprocessed for the deduction to apply. 

    • Employee can apply via portal - When checked, the employee will have the ability to manage their own deduction in their employee portal or app. 
  4.   Save.

Create a new salary sacrifice type

  Please note: The following information relates to non-superannuation salary sacrifices (e.g. novated leases). If you are looking for information regarding salary sacrificing for superannuation, you can find that here

In order to add a salary sacrifice to an Employee Profile or payslip, you'll first need to set it up as a deduction type.

To add a new salary sacrifice:

  1. From the main menu, navigate to Payroll Settings > Deductions
  2. Click + Create new.



  3. Select Salary sacrifice from the drop-down and enter the following details:
    • Name - Name of the salary sacrifice. This will be visible to the employee on their payslip.
    • Method - fixed amount ($) or percentage (%).
    • Pay to Another Account
      • Yes - This will allow you to specify another bank account to pay the salary sacrifice into. 
      • No - The value will be withheld from the employee's pay but will not go anywhere. 
        Please note: A salary sacrifice that is specified to pay into another bank account cannot be added to the timesheet/payslip manually. If the timesheet/payslip has already been generated for the employee, the salary sacrifice will need to be applied to the Employee Profile and the pay cycle will need to be reprocessed for the salary sacrifice to apply. 
  4.   Save.

Edit an existing deduction

Your existing deductions can be edited at any time. However, please be aware that changes made will only affect future use of the deduction. 

To edit a deduction:

  1. From the main menu, navigate to Payroll Settings > Deductions
  2. Locate the deduction you'd like to edit, using the search box if required. 
  3. Click the edit icon to the right of the deduction and select edit deduction. 



  4. Change any of the details you require then save. 
    • Type - Deduction or salary sacrifice. 
    • Name - Name of the deduction. This will be visible to the employee on their payslip.
    • Method - fixed amount ($) or percentage (%).
    • Deduction Type - Pre-tax (gross) or Post-tax (net).
    • STP Deduction Type - you have the option to choose from:
      • Not reportable
      • Fees
      • Workplace Giving
      • Child Support Deductions
      • Child Support Garnishees 
    • Pay to Another Account
      • Yes - This will allow you to specify another bank account to pay the deduction into. 
      • No - The value will be withheld from the employee's pay but will not go anywhere. 
        Please note: A deduction that is specified to pay into another bank account cannot be added to the timesheet/payslip manually. If the timesheet/payslip has already been generated for the employee, the deduction will need to be applied to the Employee Profile and the pay cycle will need to be reprocessed for the deduction to apply. 

    • Employee can apply via portal - When checked, the employee will have the ability to manage their own deduction in their employee portal or app. 

   Please note: No changes made to a deduction will be reflected on historic data. If changes made need to be updated for processed payslips, please reach out to support for assistance.   

Archive a deduction

When a deduction is no longer required it can be archived. An archived deduction will:

  • Be unable to be configured as a new deduction on employee profiles.
  • Have its historic data maintained and reportable. 
  • Still remain on employee profiles that it is configured on. 
  • Still continue to deduct wages for employees that have it configured. 

Archive a deduction

To archive a deduction:

  1. From the main menu, navigate to Payroll Settings > Deductions
  2. Locate the deduction you'd like to edit, using the search box if required. 
  3. Click the edit icon to the right of the deduction and select Archive.

Restore a deduction

An archived deduction can also be restored if you would like to be able to use it again. 

To restore an archived deduction:

  1. From the main menu, navigate to Payroll Settings > Deductions
  2. Select the Archived filter in the top-right to display your archived deductions. 

  3. Locate the deduction you'd like to restore, using the search box if required. 
  4. Click the restore icon to the right of the deduction.  



Apply Deductions

Applying a deduction on an Employee Profile 

Deductions can be set up on employee profiles, allowing for automated deductions to take place. This is the preferred method of handling deductions.

The benefits of using this method are:

  • The deduction will automatically flow through to payroll. 
  • The deduction can be paid into a separate bank account. 
  • The deduction can be split into manageable, per-cycle amounts. 
  • Deductions can be set up to recur indefinitely or to a date. 
  • Deductions can be managed outside of payroll. 

Apply a deduction on an Employee Profile

To apply a deduction to an Employee Profile:

  1. Navigate to the employee's profile. This can be done from People > Approved People or via the global search bar. 
  2. Click on the Financial tab.
  3. Select the Deductions accordion > Add Deduction and make your selection from the following:
  4. Complete the deduction details:
    Please note: Depending on the deduction type you choose, some of the below fields may not appear. 
    • Type - Select from your configured deductions and salary sacrifices. 

    • Total Amount - This value is used differently, depending on your selection for the deduction.

        • One-off deduction - This value will be deducted on a single payslip. 
        • Recurring deduction until a $ limit is reached - This is the total value, not the value per payslip. 
        •  Recurring deduction with/without time limit - This value will be deducted each payslip until a specified date, or indefinitely. 
    • Threshold Amount - This amount of gross income must be earned on the payslip before the deduction can be taken. 
    • Reference - A reference number or some detail for the deduction (e.g. reference number for child support, date of overpayment, etc). 
    • Amount per payslip - This value will be deducted each payslip until the total amount has been deducted. 

    • Start From - The first period ending the deduction is applied to. 

    • Recur until - The period ending the deduction will end on. If no date is specified the deduction will recur indefinitely. 
    • Comments - Notes and details that are visible to admin only. 
  5. Click Add Deduction. 

  Please note: If a deduction is applied to an employee profile after a draft payslip has been generated, it will not automatically populate. In this case, you can reprocess the payslip to have the deduction pull through. 

 

Applying a deduction to a payslip 

Some deductions can be applied directly to payslips. Instances where you may choose to do so include:

  • Adding a deduction to a processed payslip or adjustment. 
  • Last-minute deductions before processing payroll. 

To apply a deduction directly to a payslip:

    1. Navigate to Payroll > Pay.
    2. Locate the payslip, using the search functionality or filters if required. 
    3. Select the down arrow next to the payslip ID > Edit.

    4. Click Add Deductions. A deductions section will appear below. Enter the % or $ amount based on the deduction type.

    5. Click Calculate Totals and Preview PDF to check everything is correct.
    6. Click Update Payslip. 
    7. Enter a reason for your update and click Save Changes.

  Please note: Deductions that are configured to pay into a separate account may not be added directly to a payslip. These must be added to an employee's profile and the draft payslip can be reprocessed to pull this through. Alternatively, the bulk deductions import can be used to add these to payslips. 

 

Using the bulk deductions import

The Bulk deductions import allows the user to add, remove, or update deduction amounts in bulk from the Pay page.

This CSV Import can be used to: 

  • Manage large amounts of fluctuating deduction amounts that are applied every pay period. 
  • Remove existing deductions on draft payslips or add new ones. 
  • Add “pay to another account” deductions to a payslip without needing to apply it in the Employee Profile first. 

For more information on using the Bulk Deductions Import please read this article.

Reporting & FAQs

Processed Deductions Report

The processed deductions report will highlight all of the deductions that have been processed based on the criteria you specify. The data returned will reflect what has been processed on payslips. This includes deductions that are added or edited directly on the payslip. 

To run the Processed Deductions Report:

  1. Navigate to Reports > Financial > Processed Deduction Report.
  2. Select the Duration (date range) and add groupings.
  3. Optionally filter by:
    •  Employees
    • Operations
    • Office Codes
    • Specific Deductions
    • Batch
  4. Optionally mark the checkboxes:
    • Cash Basis - With this selected, the payment date of the payslip will be used with your date range. With this deselected, the period end date will be used. 
    • Exclude totals in Export
  5. Click Submit to run the report.
  6. You can then Export to CSV, PDF, or print if required. 

Unprocessed Deductions Report

The unprocessed deductions report will highlight all of the outstanding deductions that are applied to employees. The data returned will reflect what has been configured on employee profiles only. Deductions added to or edited on payslips will not be returned. 

To run the Unprocessed Deductions Report:

  1. Navigate to Reports > Financial > Unprocessed Deduction Report.
  2. Optionally filter by:
    • Employee/s
    • Office Codes
    • Specific Deductions
  3. Click Submit to run the report. 
  4.  The following data will be returned:
    • Employee ID - The ID of the employee with the deduction applied. 
    • Employee - The name of the employee. Clicking the name will take you to their profile. 
    • Office Code ID - The ID of the office code applied to the employee. 
    • Office Code - The name of the office code applied to the employee. 
    • Remaining To Pay - The value remaining to be deducted from the employee. This will only populate when deducting a small amount per cycle until a larger value has been withheld.
    • Amount - The total value of the deduction. A recurring deduction with no limit will display the recurring value, not a total. 
    • Recurring Till - How long the deduction is valid for. 
    • Per Cycle - The value to be deducted per pay cycle. This will only populate in two situations:
      • For protected earning deductions. 
      • When deducting a small amount per cycle until a larger value has been withheld. 
    • Deduction Type - The name of the deduction applied to the employee. 
    • Reference - A reference added to the deduction. 
    • Comments - A comment added to the deduction. 
  5. You can then Export to CSV, PDF, or print if required. 

FAQs

Why is my deduction not showing on the payslip?

If you've set up your deduction type and the deduction for the employee and your deduction is still not showing up on your employee's payslips, you can check the below sections:

  • If you have added a deduction to an accepted timesheet, have you reprocessed that payslip via selecting the draft payslip > Bulk actions > Reprocesses selected pay cycle.
  • Is the deduction to be paid into another account? If so this account will need to be added to the employee's profile first. Please note that another account will not appear for manual payslips.
  • Deductions paid to another account cannot be paid retrospectively (i.e. added to a previous pay adjustment of the past pay period).
  • Please note that once a deduction is processed it cannot be removed from the original i.e. cannot reverse deductions.
  • If you have your deduction type showing on your edit payslip/ or create adjustment and you enter in an amount, if you don't see the deduction on your payslip preview ensure to check:
    • The total amount of the payslip e.g. $200
    • Compare that amount with the deduction in the employee's profile (and check if there is a threshold amount) if the payslip is less than the threshold the deduction will not flow though (which is correct). E.g. threshold is $300 (the deduction will only trigger if the gross amount is greater than this figure).