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Setup Salary Sacrifice Deductions

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. 

Examples of salary sacrifice 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 Sacrifice

  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 will enable the allowance to report correctly in Wagemaster 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. Click close to save.

  2. After creating the Salary Sacrifice allowance, the allowance will need to be added to the Employee file> Payments> Allowances> Add

Example Payslip:

payslip.JPG

Optional Next Step:
Setup Additional Superannuation Contribution

Skip And Continue To: Setup Leave Accruals

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