In this topic

• Introduction
• Health Fund Deductions
• Social Club Deductions
• Union Deductions
• Centrelink Garnishee Deductions
• Other Garnishee Deductions
• Workplace Giving Deductions
• Child Support Deductions
• Repayment of Advance Payment
• Employee Contribution
• Any Other After Tax Deduction

Introduction

This help topic provides instructions for configuring salary packaging items as after tax deductions.

Health Fund Deductions

This item is used where an employee needs to have an after tax deduction to a Health Fund.

To add an after tax deduction for a Health Fund:

1. Select the Health Fund option from the dropdown list of salary packaging types
2. Click the New Health fund button
3. If another employee already has this deduction item set up and you want to copy the details from that employee, select the employee from the Copy From Employee field

4. Select a Health Fund from the drop down list

   NOTE: The Health Fund must be configured on the Employer -> Salary Packaging screen before it will be available in the drop down list.

5. Enter a Description for the deduction
6. Enter the Amount to be deducted from each pay for the employee
7. Enter the employee’s Health Fund Membership Number
8. Click the Save Changes button to add the deduction for the employee

Social Club Deductions

This item is used where an employee needs to have an after tax deduction to a Social Club.

To add an after tax deduction for a Social Club:

1. Select the Social Club option from the dropdown list of salary packaging types
2. Click the New Social Club button
3. If another employee already has this deduction item set up and you want to copy the details from that employee, select the employee from the Copy From Employee field

4. Select a Social Club from the drop down list

   NOTE: The Social Club must be configured on the Employer -> Salary Packaging screen before it will be available in the drop down list.

5. Enter a Description for the deduction
6. Enter the Amount to be deducted from each pay for the employee
7. Click the Save Changes button to add the deduction for the employee

Union Deductions

This item is used where an employee needs to have an after tax deduction to a Union.

To add an after tax deduction for a Union:

1. Select the Union option from the dropdown list of salary packaging types
2. Click the New Union button
3. If another employee already has this deduction item set up and you want to copy the details from that employee, select the employee from the Copy From Employee field

4. Select a Union from the drop down list

   NOTE: The Union must be configured on the Employer -> Salary Packaging screen before it will be available in the drop down list.

5. Enter a Description for the deduction
6. Enter the Amount to be deducted from each pay for the employee
7. Enter the employee’s Health Fund Membership Number
8. Click the Save Changes button to add the deduction for the employee

Centrelink Garnishee Deductions

This item is used where an employee needs to have an after tax deduction to Centrelink.

To add an after tax deduction for a Centrelink Garnishee:

1. Select the Garnishee option from the dropdown list of salary packaging types
2. Select either Fixed Amount or Percent of Actual Earnings from the Type dropdown list
3. Enter either an Amount or Percentage Rate depending on the chosen Type

4. Enter the Protected Earnings Amount

   NOTE: Ready pay (powered by ePayroll) will not prevent you making payments below the Protected Earnings Amount, you will receive a warning on your payroll event listing if the employee will be paid below the protected earnings amount.

5. Select an Expiry Option. The options are:
   • Ongoing - The salary sacrifice will continue in every pay until it is manually deleted
   • Has Balance Remaining - The salary sacrifice will be deducted until the amount that is entered in the Total Amount field is reached
6. Enter the Total Amount to be deducted if Has Balance Remaining is the selected Expiry Option
7. Enter the employee’s Centrelink Membership Number
8. Click the Save Changes button to add the deduction for the employee

Other Garnishee Deductions

This item is used where an employee needs to have an after tax deduction for a Garnishee to any other organisation.

To add an after tax deduction for any other Garnishee:

1. Select the Garnishee option from the dropdown list of salary packaging types
2. Click the New Other Garnishee button
3. If another employee already has this deduction item set up and you want to copy the details from that employee, select the employee from the Copy From Employee field
4. Enter a Description for the deduction
5. Enter an Amount that you want to be deducted from each pay
6. Select an Expiry Option. The options are:
   • Ongoing - The salary sacrifice will continue in every pay until it is manually deleted
   • Has Balance Remaining - The salary sacrifice will be deducted until the amount that is entered in the Total Amount field is reached

7. Enter the Protected Earnings Amount

   NOTE: Ready pay (powered by ePayroll) will not prevent you making payments below the Protected Earnings Amount, you will receive a warning on your payroll event listing if the employee will be paid below the protected earnings amount.

8. Enter the Total Amount to be deducted if Has Balance Remaining is the selected Expiry Option
9. If you pay using a bank file and want this deduction to be paid to a bank account in your bank file, select Yes at Include in EFT File
10. If you are including a payment for the deduction in your bank file, enter the Account Name, BSB, Account Number and Reference Details for the account where you would like the deduction to be paid
11. Click the Save Changes button to add the deduction for the employee

Workplace Giving Deductions

This item is used where an employee needs to have an after tax deduction to a charitible organisation.

To add an after tax deduction for a charity:

1. Select the Workplace Giving option from the dropdown list of salary packaging types
2. Click the New Workplace Giving button
3. If another employee already has this deduction item set up and you want to copy the details from that employee, select the employee from the Copy From Employee field

4. Select a charity from the Workplace Giving drop down list

   NOTE: The charity must be configured on the Employer -> Salary Packaging screen before it will be available in the drop down list.

5. Enter a Description for the deduction
6. Enter the Amount to be deducted from each pay for the employee
7. Select an Expiry Option. The options are:
   • Ongoing - The deduction will continue in every pay until it is manually deleted
   • Has Expiry Date - The deduction will be deducted from any payroll with an accounting date that is before the expiry date
   • Has Balance Remaining - The deduction will be deducted until the amount that is entered in the Total Amount field is reached
8. Enter an Expiry Date if Has Expiry Date is the selected Expiry Option
9. Enter the Total Amount to be deducted if Has Balance Remaining is the selected Expiry Option
10. Click the Save Changes button to add the deduction for the employee

Child Support Deductions

This item is used where an employee needs to have an after tax deduction for Child Support.

To add an after tax deduction for Child Support:

1. Enter a Description for the deduction
2. Select the Type of deduction to be made
3. If the selected Type is Fixed Amount, enter an Amount to be deduction from each pay for the employee
4. If the selected Type is a Percentage, enter a Percentage Rate for the deduction each pay
5. Enter the employee’s Child Support Membership Number

NOTE: Child Support must be configured on the Employer -> Salary Packaging screen before it will be available to configure for an employee.

Repayment of Advance Payment

This item is used where an employee has been paid in advance and is repaying that amount over time.

To add a deduction for a repayment of advance payment:

1. Select the Repayment of Advance Payment option from the dropdown list of salary packaging types
2. Click the New Repayment of Advance Payment button
3. If another employee already has this deduction item set up and you want to copy the details from that employee, select the employee from the Copy From Employee field
4. Enter a Description for the deduction
5. Enter the Amount to be deducted from each pay for the employee
6. Select an Expiry Option. The options are:
   • Ongoing - The deduction will continue in every pay until it is manually deleted
   • Has Expiry Date - The amount will be deducted from any payroll with an accounting date that is before the expiry date
   • Has Balance Remaining - The amount will be deducted until the amount that is entered in the Total Amount field is reached
7. Enter an Expiry Date if Has Expiry Date is the selected Expiry Option
8. Enter the Total Amount to be deducted if Has Balance Remaining is the selected Expiry Option
9. If you pay using a bank file and want this deduction to be paid to a bank account in your bank file, select Yes at Include in EFT File
10. If you are including a payment for the deduction in your bank file, enter the Account Name, BSB, Account Number and Reference Details for the account where you would like the deduction to be paid
11. Click the Save Changes button to add the deduction for the employee

Employee Contribution

This item is used where an employee requires an after tax employee contribution to be deducted.

NOTE: This does not relate to after tax employee superannuation payments. For superannuation payments, please refer to Superannuation Payments.

To add a deduction for an employee contribution:

1. Select the Employee Contribution option from the dropdown list of salary packaging types
2. Click the New Employee Contribution button
3. If another employee already has this deduction item set up and you want to copy the details from that employee, select the employee from the Copy From Employee field
4. Enter a Description for the deduction
5. Enter the Amount to be deducted from each pay for the employee
6. Select an Expiry Option. The options are:
   • Ongoing - The deduction will continue in every pay until it is manually deleted
   • Has Expiry Date - The amount will be deducted from any payroll with an accounting date that is before the expiry date
   • Has Balance Remaining - The amount will be deducted until the amount that is entered in the Total Amount field is reached
7. Enter an Expiry Date if Has Expiry Date is the selected Expiry Option
8. Enter the Total Amount to be deducted if Has Balance Remaining is the selected Expiry Option
9. If you pay using a bank file and want this deduction to be paid to a bank account in your bank file, select Yes at Include in EFT File
10. If you are including a payment for the deduction in your bank file, enter the Account Name, BSB, Account Number and Reference Details for the account where you would like the deduction to be paid
11. Click the Save Changes button to add the deduction for the employee

Any Other After Tax Deduction

This item is used where an employee requires an after tax employee for any other reason.

To add an after tax deduction for any other reason:

1. Select the Other After Tax Deduction option from the dropdown list of salary packaging types
2. Click the New Other After Tax Deduction button
3. If another employee already has this deduction item set up and you want to copy the details from that employee, select the employee from the Copy From Employee field
4. Enter a Description for the deduction
5. Enter the Amount to be deducted from each pay for the employee
6. Select an Expiry Option. The options are:
   • Ongoing - The deduction will continue in every pay until it is manually deleted
   • Has Expiry Date - The amount will be deducted from any payroll with an accounting date that is before the expiry date
   • Has Balance Remaining - The amount will be deducted until the amount that is entered in the Total Amount field is reached
7. Enter an Expiry Date if Has Expiry Date is the selected Expiry Option
8. Enter the Total Amount to be deducted if Has Balance Remaining is the selected Expiry Option
9. If you pay using a bank file and want this deduction to be paid to a bank account in your bank file, select Yes at Include in EFT File
10. If you are including a payment for the deduction in your bank file, enter the Account Name, BSB, Account Number and Reference Details for the account where you would like the deduction to be paid
11. Click the Save Changes button to add the deduction for the employee