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Set Up Salary Sacrifice Deduction - Other Items

What is Salary Sacrifice?

The purpose of this article is to explain how to set up a before tax deduction for employees who have a salary sacrificing arrangement. The employee has a deduction set up specifically to reduce their taxable or gross income. 

This is a salary sacrifice and often worked into salary packages.  Examples of this would be an employee salary sacrificing for a computer, car, mortgage, rent, etc.  This article does NOT relate to Superannuation Salary Sacrifice.

Setting up salary sacrificing

  1. Go to Setup> Allowances > Add> Next> Standard Allowance> Next 0_669_1.JPG
    • Description: The words Salary Sacrifice or SalPac at the start of the description this will enable the allowance to report correctly in Sage WageEasy.  i.e. If the salary sacrifice is for a laptop then Salary Sacrifice Laptop would be appropriate.
    • Type: Deductions
    • Taxed: Must be ticked
    • Frequency: Each Pay
    • Amount: Per Pay dollar value of the salary sacrifice
  1. After creating the Salary Sacrifice allowance, the allowance will need to be added to the Employee file> Payments> Allowances> Add

Example Payslip:

payslip.JPG

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