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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. |
If your employees request to set up a salary sacrifice payment from their pay, you will need to create a recurring expense rule.
In this example, we will set up a recurring salary sacrifice superannuation payment of $500 for employee Ilona Dragnica.
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.
To set up a recurring expense, click on Add New Expense Rule.
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, and validate that it is accurate and appropriately 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. In this example, we used "Sal Sac Ilona Dragnica"
- Select which staff (employees) this rule will apply to - In this example, we selected Ilona Dragnica
- Select whether the expense is a fixed amount or a percentage of the employee's wage - In this example, we selected fixed and entered $500.
- Select or add a bank account to make the superannuation payment to. Leave this as "No Bank Account" as the next step will allocate the Salary Sacrifice to the superannuation contributions report. Note: If salary sacrifice is to an SMSF this is to be undertaken in a separate process in the employees profile.
- Confirm the 'Super' classification for this expense is correct. This will add the salary sacrifice deduction to the superannuation contributions report.
Once you are happy with the rule configuration, click Add Rule.
The rule will appear in the list and this salary sacrifice super expense rule will now apply automatically to every pay run for Ilona Dragnica.
The recurring Salary Sacrifice rule we have created automatically adds a $500 salary sacrifice payment under the Expenses header in the payslip for every pay run processed for Ilona Dragnica.