Deduction Categories

Deduction Categories

The first thing you need to do to start using deductions is to setup your deduction categories.

1. Navigate to Dashboard > Payroll Settings > Pay Run Settings > Deduction Categories.

2. When you click on the Deduction categories, you can see a list of default Deduction categories.

3. Click on the green "Add" button to the top right-hand side to create a new Deduction category.

4. Fill the following fields,

• Enter the name of the Deduction category
• Deduction Type - Select whether it will be a pre or post-tax deduction 
• Enter an External Id for the deduction category, if required. 
• Classification - When reporting employee earnings to the ATO (whether via a payment summary annual report or through STP), certain deductions must be assigned to specific classifications so they are itemised as per ATO specifications.  Select the relevant classification and if the deduction is not related to any of those classifications, please select Default.
• Expense General Ledger mapping code - Leave blank
• Liability General Ledger mapping code - Leave blank 

5. When you're happy with the details, click on the "Save" button.

Once you have set up your deduction categories they will now be available to be assigned to employees.