Setting up the deduction
The first step to setting up an allowance is to set up a pay category for the allowance. You can set a pay category using the following steps
Select "Settings" from the left navigation bar
Select "Deductions" under "Pay Roll"
Click the "Add New" button to create a new allowance.
Fill in the Fields
Deduction Name: Enter the name of the deduction.
ATO Reporting Category: Choose the relevant category to ensure proper reporting.
Amount: Enter the specified amount.
Select the appropriate options by ticking the boxes:
Is Pre-Taxed: If selected, the taxes will be deducted from the deduction amount before it is applied.
5. Click on Add
This will successfully create the deduction item.
Set the deduction rate for the employee
1. Go to the Employees section.
2. Select the Employee.
3. Click "Pay Rates" and then "Deductions".
4. Click Add New and select the appropriate deduction item from the list.
5. Enter any necessary notes and tick "auto inc. in payrun" to display the deduction in the payrun.
6. Enter the amount for the deduction.
7. Save your changes.
Setting a deduction in a pay run
Once you have created your deduction pay item and set the pay rate for the employees that are entitled to the pay rate, you can add the deduction to the pay run for any other employees as well by following these steps
Go to Pay runs, Open the Pay run and click on the employee to which you want to add the deduction.
Under Deductions click on the "+" icon
Choose the deduction item from the list and add the units
Click 'Save'
If you have any questions or feedback, please let us know via support@payroo.com.au