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 (this will reduce the taxable earnings by the deduction amount) to ensure correct tax.
    • Frequency: Each Pay
    • Amount: Per Pay dollar value of the salary sacrifice or this can be left with zero value and each employee can have a different amount in their Employee details>Payments>Allowances. SS2.PNG
    • Select Next (x3) to get to the Finish button.  No action is required on the ATO Payment Summary screen and Allowance General Ledger Details screen.
  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 SS1.PNG

Example Payslip:


You will also need to complete payroll configuration in Agrimaster for all such deductions to ensure these transactions are coded correctly in your cashbook. 

Optional Next Step:
Setup Additional Superannuation Contribution

Skip And Continue To: Setup Leave Accruals

Was this article helpful?
0 out of 0 found this helpful
Have more questions? Submit a request