Deductions

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. Deductions are separated into an individual category for ease of use and contain deductions that decrease the Payees Gross Pay (before PAYGW is calculated) OR Net Pay (after PAYGW is calculated).

Deduction File

The Deduction Record contains four sections;

Deduction Details.
Taxation.
Superannuation.
Reportable Fringe Benefits.

Deduction Details

Active allows you to deactivate any User Modified Pay Rates that are no longer required.

🎯 Active cannot be deselected if the

Pay Rate is assigned in Pay Template within the Payee Master File.
Allowance is assigned in All Purpose Allowance or Pay Template within the Payee Master File.
Deduction is assigned in Pay Template or Variable Deduction Banking and Repayments within the Payee Master File.

The Description can be changed when creating or editing User Modified Deductions, allowing you to define the description shown in the Payee's Pay Advice Slip.

The $ (or %) field functions slightly differently depending on the Deduction Tax Treatment. When Tax Treatment is set to

Deduct BEFORE PAYGW is calculated, the amount input field displays as $ (or % of Gross Pay). When
- $ is selected, the rate is:
  - Obtained from All Purpose Allowance, OR
  - obtained from Advanced Pay Template, OR
  - The Pay Rate when it is added in Compose (STEP 3 of Pay Day).
- % - The rate is calculated by referring to Gross (PAYGW) within Compose (STEP 3 of Pay Day) and multiplying the relevant amount.
Deduct AFTER PAYGW is calculated, the amount input field displays as $ (or % of Net Pay). When
- $ is selected, the rate is:
  - Obtained from All Purpose Allowance, OR
  - obtained from Advanced Pay Template, OR
  - The Pay Rate when it is added in Compose (STEP 3 of Pay Day).
- % - The rate is calculated by referring to Net within Compose (STEP 3 of Pay Day) and multiplying the relevant amount.

Deducted By can be changed when creating or editing a User Modified Pay Type.

Per Pay Period and Per Lump Sum - The quantity defaults to 1 when the Deduction is added in Advanced Pay Template or Compose (STEP 3 of Pay Day).

Report To Group idefines the section to which the dollar amount associated will be included in Reports.

Hide Quantity on the Pay Advice Slip and Summary Reports determines whether the quantity/hours associated with this deduction should be shown or hidden from the Pay Advice Slip, Pay Advice Slip (Simple) and Pay Advice Summary Reports.

Hide Rate on the Pay Advice Slip determines whether the rate associated with this deduction should be shown or hidden from the Pay Advice Slip and Pay Advice Slip (Simple) Reports.

Taxation

Category defines the group of payments this type falls into.

Payee Tax Treatment Categories define which Payee Tax Treatments allow this Pay Type to be selected within Compose (STEP 3 of Pay Day) based on the ATO's STP Phase 2 requirements. The Payee Tax Treatment Categories presently available in e-PayDay Go are;

Include in W1 - Total salary, wages and other payments defines if the amount associated with this payment is included in W1 - Total salary, wages and other payments.

Include in Gross (STSL, MLS) (Redundant as of FYE 2026) was previously used to define if the amount associated with this payment is included in Gross for calculating Student and Training Support Loans (STSL) and Medicare Levy Surcharge (MLS) repayments.

Include in Wages Declaration (WorkCover) defines whether the amount associated with this payment is included in the Wages Declaration (WorkCover) Report. This setting can be changed within User Modified Deductions.

Include in Payroll Tax (SRO) defines whether the amount associated with this payment is included in either the Payroll Tax (SRO) or Payroll Tax (SRO) (Non Taxable Wages) Report. This setting can be changed within User Modified Deductions.

Tax Treatment defines the Taxation Schedule that applies to this payment.

Income Stream defines the Income Stream where the deduction is reported within the STP Lodgement.

Tuple Alais defines the Tuple where the deduction is reported within the STP Lodgement.

Type Code Fact Alias defines the fact where the deduction type code is reported within the STP Lodgement.

Salary Sacrifice / Deduction Type Code defines the Type Code the amount is included in within the STP Lodgement.

Payment Amount Fact Alias defines the fact where the amount is reported within the STP Lodgement.

Include in Gross (Salary Sacrifice) defines if the amount associated with this payment is deducted from Gross when a Salary Sacrifice exists.

Include in Gross (STSL) defines if the amount associated with this payment is included in Gross for calculating the Study and Training Support Loan (STSL) repayment amount.

Include in Gross (MLS) defines if the amount associated with this payment is included in Gross for calculating the Medicare Levy Surcharge (MLS).

Superannuation

The OTE (SGAA) checkbox determines if the amount associated with this Deduction is considered Ordinary Time Earnings per the SUPERANNUATION GUARANTEE (ADMINISTRATION) ACT 1992.

Reportable Fringe Benefits

Other Benefit Type is disabled in the System Default Pay Types; however, it can be changed when creating or editing a User Modified Pay Type. This field allows you to select the relevant Reportable Fringe Benefit Type.

Factor is disabled in the System Default Pay Types; however, it can be changed when creating or editing a User-Modified Pay Type. This field allows you to select the relevant Factor for the Reportable Fringe Benefit Transaction.

Information, Warning, Error and Success Messages

The messages below are displayed when specific actions are performed within e-PayDay Go®.

Unsaved Changes Warning Message

The Unsaved Changes Warning Message is displayed when attempting to exit the Deduction File without saving after the information stored has been changed or updated.

If Acknowledge is chosen, the Deduction File is closed without saving. If Cancel is chosen, the message is closed, and the Deduction File remains open.