Summary

This tab page holds the following details:

• Method of calculation
• Deduction class
• Banking details

Fields

Calculation method:

The following is a brief explanation of the calculation methods used by deductions. See Deduction Calculation Methods for a full explanation of the different ways that deductions can be calculated.

• Fixed Amount

  The deduction would normally be set up with a quantity of 1, with the rate reflecting the value of the deduction. The transaction total is calculated by 'Quantity * Rate' as long as the Maximum Value, or Protected Earnings criteria are not exceeded.

• Percentage of Gross

  The quantity is determined from the gross pay in the current pay period; the rate is specified at either deduction or transaction level. Note that the rate on the Details (ii) tab page is entered as a percentage, where 10% would be entered as 10.00.

• Student Loan

  New Zealand only. This type ensures that student loan deductions are correctly calculated when the employee has a student loan tax code.

• Medicare levy surcharge
  Australia only. This type ensures that medicare levy surcharge deductions are calculated correctly for employees that are required to pay this.

Allowance Group and % of Allowance Group:

This field is activated only when Deduction Calculation - I. Percentage of allowance group is used.

Deduction class:

This field contains country specific options.

Sub-class

New Zealand only. From 01/04/2012, the Employer Monthly Schedule (EMS) had to report student loan payments as standard, catch-up or voluntary in accordance with the Student Loan Scheme bill.
It is also required to report child support deductions for liable parents.

The Sub-class field for Student Loan has the following options:

• Standard - Basic 12% repayment for loans above the threshold.
• Catch-up (SLCIR) - Commissioner-initiated repayment of student loan in addition to the standard repayment.
• Voluntary (SLBOR) - Extra payment of student loan by choice of employee.

The Sub-class field for Child Support has the following options:

• Liable parent - liable parent is the individual who is legally obligated to pay child support to the parent caring for the child. This obligation is determined through a child support assessment. This type of child support deduction will be reported via Payday filing.
• Custodial parent - this is the parent or non-parent carer who is primarily responsible for raising the child, typically living with the child for a significant portion of the time. This type of child support deduction will NOT be reported via Payday filing.

The Sub-class field is enabled only when Deduction class = "S. Student loan reduction" or "C. Child Support"

If you change the Sub-class field value, the following warning message appears: "Changing Sub-class will affect what is reported to IR". However, you can still save the record.

You can model deduction records that have a Sub-class value, but you cannot model the Sub-class field value to other deductions.

Superannuation deduction:

This field is automatically populated, based on the deduction type:

• U-type: "Yes"

  All U-type deductions are for superannuation.

• All other types: "No"

  Most other deductions are not for superannuation, except D-type. This field is enabled only for D-type deductions because you can use them for 'other member' superannuation deductions.

  Note: If you change the Superannuation allowance field from "Yes" to "No", then PayGlobal:
  - Treats transactions for that D-type deduction as non-superannuation transactions.
  - Does not look for Employee Super Fund records for those transactions even though some Employee Super Funds may use the deduction.

Bank account:

Account number that the deduction will be direct credited to. Bank fields are enabled when the Deductions - Details (ii) tab has Direct credit = "Yes".

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.

When you save the deduction record, if the "Invalid bank account checksum" message appears:

1. Check that the account number is valid.
2. If the number is valid, then open the bank.ini file located in your executable folder.
3. Add the account number to the file using the format:
   [BankNumbers]
   List=0101210098907000 (no spaces or hypens)
4. Save and close the file.

Bank branch:

System-generated value based on the first numbers in the Bank account.

Bank reference:

Information that will be displayed on the employees’ bank statements.

Account name:

For security reasons some banks require an account name and a bank account number to verify direct credit transactions. If the superannuation fund name is not the bank account name, then enter the bank account name in this field to ensure that the receiving bank does not reject the transactions.

Note: Some bank formats include Account name details on the PGPRPRIM002 - Direct Credit Schedule report.

Bank code, Bank particulars:

(New Zealand) Bank code and bank particulars that appear on the employee's bank statement for the superannuation fund.

Note: If you set up permanent deduction transactions in Transaction View, PayGlobal derives bank account details during pay processing so it is 'derived data'. As a result, the bank account fields appear blank in unprocessed deduction transactions, but you can display this information by pressing Ctrl+D.

Superannuation bank account hierarchy

You can define bank account information for superannuation in the following areas:

• Employee Super Funds | Bank Details tab
• Superannuation Fund | Bank Details tab
• Allowances | Details (iv) tab
• Deductions | Details (iii) tab
• Allowance or deduction transaction form.

In Transaction View, PayGlobal uses the following hierarchy to determine the default bank account that it displays on the superannuation transaction form:

• Employee Super Funds | Bank Details tab
• Superannuation Funds | Bank Details tab
• Allowances | Details (iv) tab or Deductions | Details (iii) tab.

Permanent transactions

If a deduction has Details (ii) tab | Direct Credit = "Yes", then you can set up bank account details on the Details (iii) tab. However, when you add a permanent transaction for a deduction in Transaction View, you must leave the bank account fields blank. PayGlobal will use the bank account details that you set up on the Deductions | Details (iii) tab.

If the bank account details change, then edit the deduction and your changes will affect every permanent transaction for that deduction. However, if permanent deduction transactions contain bank account details, then they will not change when you edit the Deductions | Details (iii) tab so you have to edit every permanent transaction for that deduction.

See also

Deductions

Deduction Classes

Deduction Transaction Hierarchy