Deductions can be taxable or non-taxable, may be for union fees, and they may or may not be displayed on Payment summaries. These attributes can only be set up through the Deductions list.
1 From the Lists menu, choose Deductions.
2 To add a Deduction, click Deductions>New.
3 On the General tab, enter the deduction name.
4 Click on the Option tab.
5 Tax Exempt Deduction – This box is used to indicate if the deduction is tax exempt or not. Most deductions are not tax-exempt, so refer to ATO regulations before you check off this box.
¨ Leaving this box blank will mean the deduction is taken from the net amount of an employee's pay, after tax is calculated.
þ Selecting this box will take the deduction out of the employee's gross before tax is calculated for the pay. For example, if the pay is $1000, and the deduction amount is $200, PAYG withholding will be calculated based on $800.
6 This Deduction is For a Trade Union – If the deduction is for union dues, select þ this option. Any contributions made using this deduction will appear in the Union Fees section of the employee's Payment Summary.
7 Omit Deduction From Payment Summary – Select select þ this option to exclude a tax exempt deduction from being reported on a Payment Summary.
8 Click OK.
To edit a deduction, select the deduction you wish to change and then click Deductions>Edit. Make any required changes on the Update Deduction window.
When you make changes to a deduction, Elite Payroll will ask if you want to also make these changes to any employee records that use the deduction. Previous pays using the deduction won't be affected.
The Delete button is disabled and you won't be able to delete it until you remove the deduction from any employee records or a pays that use it. To delete a deduction, select the deduction, click Deductions>Delete and then click OK to confirm that you want to delete the deduction.
Click Reports for a list of related reports.