In Saasu, you can capture Payroll Deduction for your employees. Some examples might be:
- Union Fees
- Disability and Accident Insurance
- Pension / Salary Sacrifice
- Voluntary deductions (e.g. employer loan repayments)
- Health Insurance
Example Payroll Transaction
The following two examples show you how to enter taxable or non-taxable Deductions in Saasu. Note these may not suit your specific circumstances as many variations on these examples can occur in accounting based on your tax authority, regulatory and legal requirements for your employees and organisation.
The examples are based on an employee with normal pay of $3000 pre-tax:
Voluntary Deductions Non-Taxable
Example: An employee decides to Salary Sacrifice $100 in order to have extra Superannuation/Pension funds available when they retire. In this example we are treating this Voluntary Deduction as not taxable.
When the employee is salary sacrificing $200 for their superannuation or pension fund:
Note: If you have a Deduction Pay Item for Salary Sacrifice, please ensure that you check the “this pay items is used for superannuation amounts” on the Pay Item to ensure that this is included on the Superannuation Payments Report.
Voluntary Deductions Taxable
Example: An employee and employer agree to deduct funds from the employees taxable pay in order to reimburse the employer for goods or cash equivalents owed to the employer.
When the employee is repaying $200 to their employer then the pay is as follows:
NOTE: that the tax amount is unchanged. Ticking Taxable checkbox for the Deduction Pay Item called Employee Loans ensures that Saasu treats the Wages and Salary portion that relates to this Deduction is actually taxable.
Deductions and Single Touch Payroll reporting
The ATO requires that deductions for Union Fees/Professional Association fees or Workplace Giving be reported via Single Touch Payroll reporting. In order for these pay items to be picked up by the STP report you need to include the relevant Deduction Type for these items.