Summary

Deductions are the amount that is deducted from an employee's pay.

Fields

Direct credit:

• Yes

  The deduction value is direct credited to the specified bank account. If a bank account is not entered in the transaction, then PayGlobal derives a direct credit account using the following hierarchy:

  1. Award Deductions - Bank account
  2. Period Deductions - Bank account
  3. Internal Company Deductions - Bank account
  4. Deduction - Details (iii) tab - Bank account.

     Important: If no bank account exists, then pay processing will fail.

• No

  Does not apply. Disables the Consolidate DCs field.

For superannuation deductions, when you change and save the value of this field, PayGlobal displays the following message:

"Are you sure you want to change Direct credit?
This will have an impact on the Superannuation Direct Credit Report".

• If you click "Yes", then PayGlobal accepts the new direct credit value.
• If you click "No", then PayGlobal returns to the original direct credit value.

Consolidate DCs:

Active when Direct credit = Yes

The setting determines whether deductions are exported as a single, consolidated transaction or as separate transactions.

• Yes

  Deductions are exported to the bank as a single consolidated transaction.

• No

  Deductions are exported to the bank separately.

Full amount only:

• Yes

  The full amount is deducted if funds are available, but if the funds are insufficient, no deduction is made.

• No

  When there are insufficient funds, only a part payment is made.

Amount or rate:

The dollar amount to deduct per Pay Period. The way in which the amount is to be deducted varies according to the Calculation Method selected in the Details (iii) tab page. PayGlobal applies the following logic when sourcing a deduction rate during processing:

Award Deduction Rate, then Period Deduction Rate, then Internal Company Deduction Rate, then Deduction Rate.

Note: If you enter a percentage value in this field, you must use the format "00.00". For example, 20 percent is "20.00".

Exclude first amount:

Enter the amount that is unaffected by the deduction.

Important: In NZ databases, do not enter the student loan repayment threshold in the Exclude first amount field because it is hard-coded in the "L. Student loan" calculation method. See Deduction Calc Method - L. Student Loan (NZ)

Primary payment:

This field is used primarily for reporting purposes. It allows specific reports to list the deductions that use this field. For example, a cheque signing report includes all deductions that are coded here as 'Q:Cheque'. The main reports that rely on this field are the Cheque report and the Signature report.

Suspended deduction:

• Yes

  Deduction is suspended for a time and cannot be used.

• No

  Deduction is always made.

The next three fields are used in Australian databases only.

Tax deductible (Print on Payment Summary):

• Yes

  The YTD value of this deduction is included in the tax deductible section of the employee's Payment Summary.

• No

  This field is generally set to No.

  If a deduction has Deduction class = "U. Union deduction" or "W. Workplace giving", then it is included in the Deductions section of the Payment Summary. Such deductions must have Tax deductible (Print on Payment Summary) = "No" to prevent the deduction appearing twice on the Payment Summary report.

  Note: The following fringe benefit deduction fields are not displayed if Company Settings | FB Employer Type = "None".
  See Company Settings - Tax Details (Aus).

FB type:

Indicates whether this is a fringe benefit deduction, and how the fringe benefit is grossed up when PayGlobal calculates the employer notional taxable value. See Fringe Benefit Rates - Details (Aus).

• None (default) - Not a fringe benefit deduction.
• Type 1
• Type 2.

Reportable fringe benefit:

This Yes/No field indicates whether this fringe benefit amount is included in reportable fringe benefits. If this field is "Yes", then PayGlobal still applies the $2,000 threshold test to the grossed up fringe benefit amount for this deduction.

See also

Deductions

Deduction Transaction Hierarchy