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Important notice Information provided by Deputy is intended for general guidance purposes only and is not a substitute for professional legal or financial advice. Deputy does not accept liability for actions taken based on this information. |
After setting up payroll in Deputy for the first time, one important task you will need to complete before you can run a pay run is to configure your deductions and expenses.
- Introduction to expenses and deductions in Deputy Payroll
- Accessing expenses and deduction settings
- Add a new expense rule
- Add a new deduction rule
- Adding deductions and expenses as a csv file
- Edit, clone or delete an existing expense or deduction rule
- Adding a specific bank account for expenses and deductions
- FAQs
Introduction to expenses and deductions in Deputy Payroll
During a pay run, you can add one-off deductions or expenses. However, System Administrators and Payroll Administrators can also create recurring expenses and deductions in Deputy Payroll that will apply automatically to every pay run.
A reason you might create a recurring expense might be to set up an ongoing superannuation salary sacrifice or novated lease payment for team members who request one.
A reason you might create a recurring deduction might be to set up child support payments, union fee payments or charity donations for team members who request them.
It is important to note that:
- Expenses are considered in pre-tax tax calculations.
- Deductions are considered in post-tax calculations.
Interested in setting up recurring bonuses, allowances and foreign income payments? Read Set up recurring extra earnings.
Accessing expenses and deductions settings
To access the configuration page for recurring expenses and deductions, select Business settings from the drop-down menu under your name.
On the Pay tab, click on View payroll settings.
If you have multiple entities in Deputy, you will need to select the entity in which you wish to set up expenses and deductions, then click on Deductions and Expenses on the left-hand side panel.
Add a new expense rule
To set up a recurring expense, click on Add New Expense Rule.
Use a template
Deputy provides a template for Super Salary Sacrifice expenses to help you quickly fill out the form. If you would like to start with this template, click on Super Sal Sac.
The form has been pre-filled with sample information, but you will still need to review each field in the form to edit it to ensure it is set up for your specific business needs. For example, you will need to:
- change the title of the rule to something meaningful to your business - this title will appear on the employee's pay slip
- Select which staff (employees) this rule will apply to
- Select whether the expense is a fixed amount or a percentage of the employee's wage
- Select or add a bank account if required
- Confirm the 'Super' classification for this expense is correct
For a more detailed explanation of each field in this form, see below.
Once you are happy with the rule configuration, click Add Rule.
This expense rule will now apply automatically to every pay run for "Amelie Smith".
Configure an expense rule from scratch
To set up a recurring expense rule, add a new expense rule and complete all the fields in the form.
When you click on each field, there is a red prompt at the bottom of the pop up to advise what is expected to be entered, and there is also an (i) icon next to each field to provide extra guidance.
Title
This is the title of the expense rule and will appear on the employee's payslip.
Staff
Click on the drop down to select which team members you wish this recurring expense to apply to. Choose from either:
- ALL - All team members in this business entity OR
- Groups - All team members on a selected pay calendar OR
- Employees - select a specific team member to apply this expense rule to.
Fixed Value or Percentage
Choose how to calculate the amount of the expense payment. Choose from:
Fixed
Click on Fixed and enter a dollar amount in the Value field.
In the example below, Fixed $200 has been entered, so the expense payment in every pay run for that employee would equal $200 regardless of how much the employee earned in that pay.
Percentage
Click on Percentage, choose a percentage calculation option and enter a percentage value.
Choose from:
- All Payments - the expense calculation will be a percentage of all payments for the employee in that pay run, including superannuation.
- All Payments Less Super - the expense calculation will be a percentage of all payments for the employee in that pay run, NOT including superannuation.
- Gross Taxable - all wages less expenses. Note: this option should NOT be selected for expense calculation.
- After Tax - all wages less expenses, less tax Note: this option should NOT be selected for expense calculation.
Bank account
There is a field to select a specific bank account to direct the payment to:
- If you leave the selection set at No Bank Account the recurring expense payment will not be included in the ABA file for the pay run.
- If you would like to add a bank account to direct the recurring expense payment to, click on the link to Add Bank Account.
Classification
Select a classification for the expense payment. There are the following options:
- NA - used for standard deductions such as "Advance Repayments"
- Super - used for superannuation payments such as superannuation salary sacrifice or super deductions. If you select this option, the expense will be present in super reports and clearing house payments.
- Fees - used for union fees, subscriptions to trade and professional associations
- Work Place Giving - used for deductions going to charity organisations
- Fringe Benefit Exempt - used if the expense payment is classed as a fringe benefit and is exempt from tax
- Fringe Benefit Taxable - used if the expense payment is classed as a fringe benefit and is taxable
- Child Support PEA - for payments that need to be made to Department of Human Services (DHS). The Protected Earnings Amount (PEA) is the part of an employee’s pay, exempt from child support deductions.
- Child Support 72A - for payments that need to be made to Department of Human Services (DHS). 72A indicates it is a fixed amount that the employer is legally required to deduct from the employee's earnings for child support, as advised by DHS. This may result in the employee having a $0.00 net pay if the required deduction is the same as or more than the net pay for that pay period.
Once you are happy with the rule configuration for all settings, click Add Rule.
This expense rule will now apply automatically to every pay run for the employee(s) you selected in the Staff section.
Add a new deduction rule
To set up a recurring expense, click on Add New Deduction Rule.
Use a template
Deputy provides templates for common deductions such as Child Support, Union Fees and Charity donations to help you quickly fill out the form. If you would like to start with this template, click on the relevant template. In the example below, we have chosen to demonstrate 'Child Support'.
The form has been pre-filled with sample information, but you will still need to review each field in the form to edit it to ensure it is set up for your specific business needs. For example, you will need to:
- you need to change the title of the rule to something meaningful to your business - this title will appear on the employee's pay slip
- Select which staff (employees) this rule will apply to
- Select whether the deduction is a fixed amount or a percentage of the employee's wage
- Select or add a bank account if required
- Confirm that the classification for this expense is correct
For a more detailed explanation of each field in this form see below.
Once you are happy with the rule configuration, click Add Rule.
This expense rule will now apply automatically to every pay run for "Ed Kingsley".
Configure a deduction rule from scratch
To set up a recurring deduction rule, add a new deduction rule and complete all the fields in the form.
When you click on each field, there is a red prompt at the bottom of the pop up to advise what is expected to be entered, and there is also an (i) icon next to each field to provide extra guidance.
Title
This is the title of the deduction rule and will appear on the employee's payslip.
Staff
Click on the drop-down to select which team members you wish this recurring deduction to apply to. Choose from either:
- ALL - All team members in this business entity OR
- Groups - All team members on a selected pay calendar OR
- Employees - select a specific team member to apply this deduction rule to.
Fixed Value or Percentage
Choose how to calculate the amount of the deduction payment. Choose from:
Fixed
Click on Fixed and enter a dollar amount in the Value field.
In the example below, Fixed $200 has been entered, so the deduction payment in every pay run for that employee would equal $200 regardless of how much the employee earned in that pay.
Percentage
Click on Percentage, choose a percentage calculation option and enter a percentage value.
Choose from:
- All payments - the deduction calculation will be a percentage of all payments for the employee in that pay run, including superannuation.
- All Payments Less Super - the deduction calculation will be a percentage of all payments for the employee in that pay run, NOT including superannuation.
- Gross Taxable - all wages less expenses. This calculation should only be used for deduction rules.
- After Tax - all wages less expenses, less tax. This calculation should only be used for deduction rules.
Bank account
There is a field to select a specific bank account to direct the payment to:
- If you leave the selection set at No Bank Account the recurring deduction payment will not be included in the ABA file for the pay run.
- If you would like to add a bank account to direct the recurring deduction payment to, click on the link to Add Bank Account.
Classification
Select a classification for the deduction payment. There are the following options:
- NA - used for standard deductions such as "Advance Repayments"
- Super - used superannuation payments such as superannuation salary sacrifice or super deductions. If you select this option, the deduction will be present in super reports and clearing house payments.
- Fees - used for union fees, subscriptions to trade and professional associations
- Giving - used for deductions going to charity organisations
- Child Support PEA - for payments that need to be made to Department of Human Services (DHS). The Protected Earnings Amount (PEA) is the part of an employee’s pay exempt from child support deductions.
- Child Support 72A - for payments that need to be made to Department of Human Services (DHS). 72A indicates it is a fixed amount that the employer is legally required to deduct from the employee's earnings for child support, as advised by DHS.
Once you are happy with the rule configuration for all settings, click Add Rule.
This deduction rule will now apply automatically to every pay run for the employee(s) you selected in the Staff section.
Adding deductions and expenses as a CSV file
You can export any expenses and deduction rules you have set up as a CSV.
In the Deduction and Expenses section, click on CSV Transfer, then select Export CSV.
A CSV file will then download to your computer and you can open it in a spreadsheet program such as Excel.
To upload a CSV with deductions and expenses, create a spreadsheet adhering to these formats:
| Column Title | Description | Mandatory | Accepted Format | Example |
| NRID | The ID of the existing rule if you want to update it | No | Numerical | 123 |
| Negtype | The type of rule:
|
Yes |
Enter either:
|
expense |
| Name | The name of the rule that will appear on payslips | Yes |
String max 40 characters Acceptable Characters: Alphanumerical and special characters: ~!@#$^*()-_[]|:.>/ |
Sal Sac John Smith |
| eusername | Who the rule applies to:
|
Yes |
Enter either:
|
john_smith |
| value |
The dollar amount or percentage value. For percentage-based rules, enter the value as a decimal (e.g., 3.75 for 3.75%) |
Yes |
For fixed dollar amounts: An integer with Max value of 99999999 (max length 8 digits) For percentage values: An integer with Max value of 99999999.999 (max length 12 digits) |
3.750 |
| overtime | The classification of the rule:
|
Yes |
Enter either:
|
SUPER |
| fixed |
Whether the value is fixed or percentage:
|
Yes |
Enter either:
|
0 |
| BDID |
The bank account ID for automatic payments: "0" - No bank account |
No |
Enter either:
|
0 |
IMPORTANT:
- When updating existing rules, include the NRID in your CSV file
- When creating new rules to upload, leave the NRID column blank
- Bank account IDs can be found in the Bank Settings section
- Employee usernames and group IDs can be found in the respective sections
Once you have prepared your spreadsheet and saved it to your computer as a CSV, you can upload it by clicking on CSV transfer, then selecting Import CSV.
Select your prepared spreadsheet to upload.
You will see a confirmation message indicating how many rules were successfully imported or updated, and the expenses and deduction rules will appear under the relevant tabs.
Edit, clone or delete an existing expense or deduction rule
If you wish to edit an existing expense or deduction rule, click on the pencil icon on the far right-hand side.
Edit the settings in the same way as when you were creating the rule, then click Update Rule. The changes will apply to your next pay run.
If you need to delete an expense or deduction rule, click on Delete on the lower left-hand side of the popup.
You can also clone (or copy) an existing expense or deduction rule by clicking on Clone.
Change the settings you need to customise from the rule you cloned. In this example, we allocated the rule to a different team member. Then click Add rule.
Adding a specific bank account for expenses and deductions payments
When setting up expenses and deduction rules, you have the option to nominate a specific bank account the payment will be made to. This payment will be included in your ABA file so all your employee payments can be paid in one go.
If you need to add a new bank account to nominate in a deduction or expense pay rule you are creating, click on the Add Bank Account link.
This will open a new tab in your browser to display a page of Bank details. To add a new bank account, click Add Bank Account.
Complete the Add bank account form by entering the following information into the fields:
Note: you can also use the Child Support Quick Fill option.
Nickname
Enter text to indicate an easy way for anyone managing payroll to understand what the bank account has been set up for. Nickname can also be referred to a Bank ID field.
Some examples might be:
- Child Support 72A - John Smith
- Child Support - Deductions
- Offset Mortgage - Mary Brown
- Christmas party - All staff at Location A
Group
Select from the dropdown options:
- All - select All if you use the same bank account for super and wages
- Wages - select Wages for your wage bank account
- Super - select Super for your super bank account
- Deductions - Select Deduction to assign a Deduction line on the payslip or Deduction rule to a bank account
- Groups - Select a Group (team members all on the same pay calendar) if the wages or super for that group of staff need to come out of a particular bank account
Account Name
Enter the Account name for the bank account (usually set by the bank when the account was opened) eg. JH AND PW SMITH
BSB
Enter the BSB (Bank State Branch) number of the bank account. eg. 923-100
Account Number
Enter the account number assigned to the account by the bank. eg. 98362478
Bank Code
Select the bank where the bank account is held. This filed is not required for deductions.
APCA Code
Enter your APCA (Australian Payments Clearing Association Code). This code is supplied to you by your bank, contact your bank if you have not been supplied with a APCA code
If you are not sure what this value is, try 0 first. For Deductions, use 0.
Reference
The text that you enter in this field will appear on your bank statement. It can be anything you like, but it can't be left blank. eg. Wages
For Deductions, this text must be the reference ID. Enter the reference ID supplied to you by the organisation expecting the payment. The reference ID is the code that will allow them to reconcile the payment being made with the correct person in their system.
Child Support Quick Fill
There is the option to refill the Add Bank Account form with Child Support details by clicking on Child Support on the right-hand side of the form.
This will prefill many required details, including the Bank account details for the Department of Human Services (DHS), where the Child Support payment will go to however, there are some fields you still need to enter:
- Nickname of the Account: It is recommended to use the format
- Child Support 72A - "name of team member paying child support" (if you have been advised by DHS to use a unique reference number for the individual)
- Child Support - Deductions (for payments being made to DHS using the Employer Payment Reference Number for all deductions in the pay run).
- Reference: Enter the reference ID supplied to you by the DHS. The reference ID will either be the Employer Payment Reference Number or a unique reference number related to the individual notice.
The Employer Reference Number will allow DHS to reconcile the payment being made with the STP report and then with the correct individuals in their system.
The unique reference number will allow DHS to reconcile the payment being made directly to the correct individual in their system. This will generally be applied to Garnishee (72A) notices however, you should always check the notice for the reference DHS requires you to use.
Once you are happy with the settings you have added, click Add Bank Account at the bottom of the pop up to add the bank account.
FAQs
What happens if I set up a recurring deduction or expense that ends up exceeding the employee's total wages for a particular pay run?
If you set up a recurring deduction or expense that was, say $500, but for one pay run the employee worked less than expected and say earned only $300, then the pay run would show a negative amount of $200.
This would need to be manually corrected during the payslip review stage of the pay run before the pay run is completed.
If the negative balance is accidentally missed during review and not actioned, but still included in the ABA file, then this will cause an error when the ABA file is being processed at the bank.