Setting up Pay Run Inclusions

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Pay Run Inclusions comprise of additional pay items that are set up against an employee and then automatically included in the pay run. The specific items include:

  • Deductions
  • Employer Liabilities
  • Expenses
  • Super Adjustments
  • Tax Adjustments

These can be set up to include a specific start date and end date (otherwise it can repeat indefinitely). To set up a Pay Run Inclusion for an employee, choose the relevant employee from the employee list and then select Pay Run Inclusions from the left side menu. You will see the following screen:

Screen_Shot_2017-09-12_at_18.07.39.png 

From there, refer to the following instructions below depending on what item you want to set up.

Setting up a recurring Super Adjustment

N.B. Salary Sacrifice Super or Member Voluntary deductions should NOT be set up in this section. They should be set up as a recurring Deduction.

  1. Click on 'Add'.
  2. Select the appropriate contribution type from the drop down list.
  3. Enter the adjustment amount to be applied per pay run. It can be a Fixed amount, a Percentage of Gross earnings, Percentage of OTE or Percentage of Taxable Earnings.
  4. Enter any notes if you want the employee to see them on their pay slip.
  5. Enter the date this inclusion is to commence.
  6. Choose when this inclusion should cease (a specific end date, never or once a particular dollar amount has been reached).
  7. Click on 'Save'.

An example of a Super Adjustment is as follows:

Screen_Shot_2017-09-12_at_18.09.54.png

Setting up a recurring Tax Adjustment

An example scenario of when to use this would be when an employee has requested additional PAYG be deducted from their pay.

  1. Click on 'Add'.
  2. Enter the adjustment amount to be applied per pay run. It can be a Fixed amount, a Percentage of Gross earnings or Percentage of OTE.
  3. Enter any notes if you want the employee to see them on their pay slip.
  4. Enter the date this inclusion is to commence.
  5. Choose when this inclusion should cease (a specific end date, never or once a particular dollar amount has been reached).
  6. Click on 'Save'.

An example of a Tax Adjustment is as follows:

Screen_Shot_2017-09-12_at_18.10.56.png

Setting up a recurring Deduction

  1. Click on 'Add'.
  2. Select the appropriate deduction category from the drop down list.
  3. Enter the deduction amount to be applied per pay run. It can be a Fixed amount, a Percentage of Gross earnings or Percentage of OTE.
  4. Select whether the deduction should be paid manually, to a super fund or another bank account. (If you are setting up salary sacrifice super or member voluntary, select the super fund option).
  5. If in Step 4, you have chosen either a super fund or bank account ensure you then select the relevant fund/bank account.
  6. Select whether you want to apply preserved earnings to this deduction. Refer below on detailed information relating to preserved earnings. 
  7. Enter Payment Reference (if chosen for deduction to be paid to bank account). This reference will appear on the employee's pay slip but also the recipient's bank statement. (Handy for deductions such as child support, etc where reference numbers must be quoted). 
  8. Enter any notes if you want the employee to see them on their pay slip.
  9. Enter the date this inclusion is to commence.
  10. Choose when this inclusion should cease (a specific end date, never or once a particular dollar amount has been reached).
  11. Click on 'Save'.

Setting up Preserved Earnings

Preserved earnings is defined as the minimum net earnings an employee MUST be paid before a deduction amount can be applied in the pay run. For example, an employee could have a garnishee order but part of the order includes that the employee's net pay cannot be reduced to less than $300 per week as a result of the garnishee order. To set this up of example, you would:

(a) Preserved earnings: select 'Once a minimum net earnings limit has been reached';

(b) Preserved earnings amount: enter 350;

(c) If the amount is not reached: here you can choose to have none or only part of the deduction amount processed in the pay run;

(d) Carry forward unpaid deduction amounts: here you can choose whether or not you want any unpaid deduction amounts to be carried over to following pay runs. For example, say an employee’s recurring deduction amount was fixed at $100 per pay run but only $50 was deducted in the pay run. If you choose to carry forward the unpaid deduction amount, the unpaid $50 will be carried over and a total of $150 will be deducted in the following pay run. If you choose not to carry it over, the unpaid $50 deduction amount will be disregarded and in the following pay run only the recurring $100 will be deducted.

An example of a Deduction paid to a super fund that includes preserved earnings is as follows:

Screen_Shot_2017-09-12_at_17.45.21.png

An example of a Deduction paid to a bank account without preserved earnings is as follows:

Screen_Shot_2017-09-12_at_17.43.47.png

Setting up a recurring Expense

An example scenario of when to use this would be when an agreement has been reached with an employee that the company will reimburse mobile phone expenses and will not form part of their gross wage.

To add a new recurring employee expense, click the green Add button on the right of Expenses and complete the following details: 

  1. Select the appropriate expense category from the drop down list.
  2. Select the location the expense should be costed against. This will default to the employee's default location however you can change this to another location that the employee is attached to.
  3. Assign a tax code to expense categories to cater for sales taxes that may be applied to expense claims. If you are attached to a cloud accounting system such as QuickBooks, Xero or Saasu, you’ll be able to select the tax code from your accounting system to be pre-populated when your employees submit an expense claim.
  4. Enter the expense reimbursement amount to be applied per pay run.
  5. Enter any notes if you want the employee to see them on their pay slip.
  6. Enter the date this inclusion is to commence.
  7. Choose when this inclusion should cease (a specific end date, never or once a particular dollar amount has been reached).
  8. Click on 'Save'.

Screen_Shot_2017-09-12_at_18.26.22.png

Setting up a recurring Employer Liability   

  1. Click on 'Add'.
  2. Select the appropriate liability category from the drop down list.
  3. Enter the liability amount to be applied per pay run. You can choose to enter a fixed dollar amount, a percentage of gross pay or a percentage of OTE.
  4. Enter any notes if you want the employee to see them on their pay slip.
  5. Enter the date this inclusion is to commence.
  6. Choose when this inclusion should cease (a specific end date, never or once a particular dollar amount has been reached).
  7. Click on 'Save'.

An example of an Employer Liability is as follows:

Screen_Shot_2017-09-12_at_18.27.32.png

Additional Notes:

1. Within the employee's Pay Run Inclusions page, you will see updates on any inclusions:

  • that are set to expire once a certain dollar amount has been reached 

  • that are set to expire after a particular date

2. To edit an existing Pay Run Inclusion, simply click on the name and the settings will appear. Make the relevant changes and click on 'Save'.

3. To delete an existing Pay Run Inclusion, hover your mouse over the inclusion so that the 'x' appears. Click on this icon and then click on 'OK'.

4. In order to set up recurring employee deductions, employer liabilities and expenses, the categories initially need to be created in Payroll Settings. Click on the relevant Inclusions below to find out more information on how to set these up:

If you have any questions or feedback, please let us know via support@yourpayroll.com.au

 

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