C. Child Support
(NZ & FJ)

In NZ, Child support must be the first deduction applied after PAYE and must also respect the protected net earnings rule. Using this deduction class automates these compliance requirements. This class is also used to identify Child Support payments that must be reported to IRD.

For IRD reporting also see Child Support Deduction Variation Codes).

D. Salary Sacrifice Deduction
(All countries)

You can select this option only when Type = "D. Standard deduction" and Taxable = "Yes".

Use this option to identify deductions that are made under a salary sacrifice agreement.

E. Protected earn ex ACC EL
(NZ Only)

You should select this option for deductions subject to the District Court Act, for example, WINZ deductions, Court deductions and IRD Arrears deductions, where the ACC Earners Levy is excluded from the Nett Pay calculation for protected earnings.

G. Payroll Giving
(NZ Only)

In NZ, Payroll Giving Schemes grants employees an immediate tax credit for their donation(s) to an IRD registered payroll giving charity.

The donation amounts and the tax credits are reported to IRD via Payday Filing.

Each registered charity your organisation supports must have a unique deduction record.

L. Child support standard
(AU only)

In AU, use this deduction class for Child support payments arising from a deduction made under a notice as per section 45 of the Child Support (Registration and Collection) Act 1988.

Deductions using this class should be setup as a fixed dollar amount each pay period.

Deductions under section 45 of the Child Support (Registration and Collection) Act 1988 are made subject to a Protected Earnings Amount (PEA). This amount is updated on 1 January each year. The PEA is set using either the Protected Earnings field on Details (i) tab.

Deductions using this class will be reported to the ATO via STP v4 from 1 January 2022

M. Medicare levy surcharge
(AU only)

In AU, this deduction is used to make medicare levy surcharge payments whenever the employee has completed a medicare levy variation form that indicates that they need to pay the medicare levy surcharge.

Deductions using this class will be included in the PAYG that is reported to the ATO via STP v4.

O. SRT Override
(FJ only)

The SRT Override class causes the deduction to override the Social Responsibility Tax, using either the Fixed Amount or Percentage of Gross calculation type. If using the Fixed Amount, set the amount in the Quantity field, and if using Percentage of Gross, set the desired percentage in the Rate field. The un-used (rate/quantity) field should be set to 0.

Note that overriding SRT disables the protected earnings tax rule for Fiji.

R. Child support garnishee
(AU only)

In AU, use this deduction class for Child Support payments arising from a deduction made under a notice as per section 72A of the Child Support (Registration and Collection) Act 1988.

Deductions using this class should be setup as either: a percentage of an employee’s taxable gross income, a lump sum or a fixed amount each pay until the debt is satisfied.

Deductions using this class will be reported to the ATO via STP v4 from 1 January 2022

S. HELP additional reduction
(AU only)

In AU, this deduction class is used to make additional repayments to the employee's student and training support loans.

U. Union deduction
(All countries)

In AU, Union deductions are reported to the ATO via STP. Union fee deductions should be setup as follows:

• Deduction class = "U. Union deduction"
• Type = "D. Standard Deduction"
• Taxable = "No" (employees can claim these payments only at the end of the tax year)
• Tax deductible (print on Payment Summary) = "No" (to prevent the deduction from appearing twice in the report).