Pay Types - System Default Deductions Explained
Jan 17, 2025
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Deductions are used on pay lines when processing a Pay Run, in addition to the required Pay Rates and Allowances. We have provided the most commonly required Deductions as System Defaults (Templates) that can be used "as is" or copied and modified to suit your requirements.
For ease of use, Deductions are separated in two categories,
- Salary Sacrifice - decrease the Payees Gross Pay (before PAYGW is calculated).
- After PAYGW - decrease the Payees Net Pay (after PAYGW is calculated).
Single Touch Payroll Phase 2 has resulted in changes to the reporting of Deductions. Previously only Salary Sacrifice to Superannuation was itemised separately.
An * indicates a Tuple; else, it is a Fact within the STP file used when reporting to the ATO.
| Description | Include in W1 (Total of Salary, Wages & other payments); | Taxable | OTE (SGAA) | Salary Sacrifice Type Code (PAYEVNTEMP266) |
Deduction Type Code (PAYEVNTEMP10) |
Reported as |
|---|---|---|---|---|---|---|
| Yes - reduces Gross | Yes - reduces Gross | Yes | S | Salary Sacrifice (PAYEVNTEMP265)* |
||
| Salary Sacrifice (to other benefit) | Yes - reduces Gross | Yes - reduces Gross | No | O | Salary Sacrifice (PAYEVNTEMP265)* |
|
| Salary Sacrifice (to other benefit, OTE) | Yes - reduces Gross | Yes - reduces Gross | Yes | O | Salary Sacrifice (PAYEVNTEMP265)* |
|
| Salary Sacrifice (to Workplace Giving) | Yes - reduces Gross | Yes - reduces Gross | No | O | Salary Sacrifice (PAYEVNTEMP265)* |
|
|
|
Yes - reduces Gross | Yes - reduces Gross | Yes | O | Salary Sacrifice (PAYEVNTEMP265)* |
|
| Child Support Garnishee | No | No | No | G | Deduction (PAYEVNTEMP227)* |
|
| Child Support Deduction | No | No | No | D | Deduction (PAYEVNTEMP227)* |
|
| Union Fees | No | No | No | F | Deduction (PAYEVNTEMP227)* |
|
| Workplace Giving | No | No | No | W | Deduction (PAYEVNTEMP227)* |
|
| After Tax Deduction | No | No | No | Not reported in STP Phase 2 | ||
| No | No | No | ||||
