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Salary sacrifice Deductions

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Introduction

This section describes how to set up a before tax salary sacrifice for an employee. A salary sacrifice can be added for one of the pre-configured items or use Other Salary Sacrifice Items for any others. This can be set to be paid directly to a bank account with the payroll where required.

Computer Purchase Plan

This item is used where an employee is salary sacrificing a computer purchase.

To add a salary sacrifice amount for a computer purchase plan:

  1. Select the Computer Purchase Plan option from the dropdown list of salary packaging types
  2. Click the New Computer Purchase Plan 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 salary sacrifice will continue in every pay until it is manually deleted
    • Has Expiry Date - The salary sacrifice will be deducted from any payroll with an accounting date that is before the expiry date
    • Has Balance Remaining - The salary sacrifice 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

Mobile Phone

This item is used for a before tax salary sacrifice for a mobile phone.

To add a salary sacrifice amount for a mobile phone:

  1. Select the Mobile Phone option from the dropdown list of salary packaging types
  2. Click the New Mobile Phone 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. 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
  7. 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
  8. Click the Save Changes button to add the deduction for the employee

Education Fees

This item is used for a before tax salary sacrifice for education fees.

To add a salary sacrifice amount for education fees:

  1. Select the Education Fees option from the dropdown list of salary packaging types
  2. Click the New Education Fees 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. 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
  7. 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
  8. Click the Save Changes button to add the deduction for the employee

Novated Motor Lease

This item is used for a before tax salary sacrifice for a Novated Motor Lease.

To add a salary sacrifice amount for a Novated Motor Lease:

  1. Select the Novated Motor Lease option from the dropdown list of salary packaging types
  2. Click the New Novated Motor Lease 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 salary sacrifice will continue in every pay until it is manually deleted
    • Has Expiry Date - The salary sacrifice will be deducted from any payroll with an accounting date that is before the expiry date
    • Has Balance Remaining - The salary sacrifice 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

FBT Provision

This item is used for a before tax salary sacrifice for an FBT Provision.

To add a salary sacrifice amount for an FBT Provision:

  1. Select the FBT Provision option from the dropdown list of salary packaging types
  2. Click the New FBT 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. Click the Save Changes button to add the deduction for the employee

Any other Salary Sacrifice

This item is used for a before tax salary sacrifice for any other salary sacrifice.

To add a salary sacrifice amount for any other kind of salary sacrifice:

  1. Select the Other Salary Sacrifice Item option from the dropdown list of salary packaging types
  2. Click the New Other Salary Sacrifice Item 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 salary sacrifice will continue in every pay until it is manually deleted
    • Has Expiry Date - The salary sacrifice will be deducted from any payroll with an accounting date that is before the expiry date
    • Has Balance Remaining - The salary sacrifice 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
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Related Topics

Managing Employees Salary Packaging in Managing Employees PBI Employee Benefits in Salary Packaging After Tax Deductions in Salary Packaging Superannuation Payments in Salary Packaging

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Employees
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Get in touch with us