9.5 - Enhancement - How to Create and Update an Addition/Deduction?

Content

Introduction
How to Create New Additions/Deductions?
How to Update Existing Additions/Deductions?

Introduction

Additions and Deductions are used to add or deduct amounts in shift calculations that are separate from hours worked. They serve a distinct purpose from Allowances and are specifically designed to adjust payroll amounts, rather than being used for invoicing purposes.

If adjustments are needed that are not associated with shift calculations but are intended for invoicing purposes, please create or apply an allowance accordingly.

How to Create New Additions/Deductions?

To create new Additions/Deductions in the Finance application:

Select Master → Payroll → Additions Deductions

The Additions and Deductions screen opens as shown in the figure below
Create your new Addition/ Deduction by selecting the Type as Additions or Deductions at the bottom of the screen.
Provide all the mandatory details
Click Add to add the Addition/ Deduction

Additions Deductions2

How to Update Existing Additions/Deductions?

You can update the existing Addition/ Deduction:

Select the Addition/Deduction by clicking on it
The selected Addition/Deduction is available for update in the Additions and Deductions Details. Update all the required details
Click Update

Field Name	Description
Type	Additions - To add an amount to Members Pay. Deductions - To deduct an amount from Members Pay.
Code	The Code number is shown on the payslip. It is recommended to use a Code with max. 10 characters.
Description	Describe the allowance.
Amount Type	Select '$' or '%' based on the type of Addition/Deduction.
Amount or Percentage	Set the amount or percentage for automated calculations. The default amount/ percentage can be adjusted before applying to a member's pay.
Status	Select the Status for the Addition/ Deduction as Active or Inactive. Please note you cannot delete an entry once created. If an Addition/ Deduction is no longer required, you can update the status to Inactive.
Type: Additions (used when you wish to add an amount to the Members Pay)
Once Off	Select to show the Addition/Deduction default setting to be a one-time occurrence. However, can be adjusted if you need it to apply on multiple occasions.
Superannuation Payable	Select to include for superannuation calculations. Superannuation is the amount employers pay eligible workers to provide for their retirement. Click here for more details.
PAYG Exempted	Please ensure to select the PAYG Exempted checkbox for the Additions that must be treated as Tax Exempted, and this Addition is set to "True" once saved. If PAYG Exempted is set to "True", this Addition will not be included in the Total Gross Tax Amount.
Include in Gross Taxable Amount in STP	Select to include the Gross Taxable Amount in STP reporting.
Separately Itemise in STP	All the Additions (except reimbursements) must be selected as Separately Itemise in STP. Note that if the Additions are not set as 'Separately Itemise in STP', the system will not calculate the Gross as per the new guidelines in STP Phase 2. Additions are itemised separately, not just expense allowances that may have been deductible on the employee’s IITR. This means that additions that used to be reported as Gross for the income type must be separately itemised for STP reporting. As per ATO guidelines, reimbursement payments that are equal to the exact amount that reimburses an expense, verifiable by receipts, which was (or will be) incurred by the employee in the course of their duties must not be reported. Click to view the ATO Reference Guide for details.
Lump Sum A, Type R	Select to include the Lump Sum A Type R payments (Termination Payment) when employee engagement with the employer ends. The Lump Sum A, Type R payments are to be reported for all the unused annual leaves or annual leave loading and the component of long service leaves that accrued from 16th August 1978 and are paid out on termination only for genuine redundancy, invalidity, or early retirement scheme reasons. The employer must report two additional field details to the ATO through the STP pay event file for employment termination cases. These two fields are: Cessation Date - This is the date when the employee’s engagement with the employer ends Cessation Type - When a cessation date is reported in a Pay Event, a Cessation Type code must also be reported. The Cessation Type code selected should be either ‘R' (Redundancy) or 'I’ (Ill Health) Cessation Type Code As per ATO guidelines for STP phase 2, reporting the termination reason for the Lump Sum A, Type R payments is mandatory. In the Reasons (Personnel) Master of the Staff portal application, the Cessation Type Code for the Lump Sum payments is mapped from the Subgroups 'MBR TERMINATED' in the Reason Category, and the Reason Category selected can be either Ill health (I), or Redundancy (R).

Type: Leave applicable for encashment	Select to include the addition for the leave encashment. To view details click the link.

Type: Deductions (used when you want to deduct an amount from Members Pay.)
Child Deduction Support and Child Support Garnishee	Select to report child support amounts to the ATO on or before the employee’s pay date. The Child Support Deduction is a fixed dollar amount for each pay period. Two different types of Child Support Amounts can be reported through our Finance application: Child Support Deductions (D) Child Support Garnishees (G) Select the Child Support Deduction or Child Support Garnishee checkbox to report the child support amounts. For deduction, select the Child Support Deduction checkbox; for Garnishee, select the Child Support Garnishee checkbox. For details refer to the Single Child Support Deductions article
Before Tax Deduction	Please select the Before Tax Deduction flag for any deduction that must be applied to the Gross Amount Before Tax. E.g. Salary Sacrifice amounts for any deductions must be applied to the net amount, please ensure the Before Tax Deduction flag is checked, and this will be deducted after tax.
Salary Sacrifice for Superannuation	Select this for an effective Salary Sacrifice arrangement, entered into before the work is performed, where contributions are paid to a complying fund, where the sacrificed salary is permanently foregone.
Salary Sacrifice for Other Employee Benefits	Select this for an effective Salary Sacrifice arrangement, entered into before the work is performed, for benefits other than for superannuation, where the sacrificed salary is permanently foregone (that is novated lease, gym membership, etc). Click here for more details.