Allow/Deduct Codes

A 2 character code that represents the Allowance or Deduction.

A description of the Allowance or Deduction code.

• The description is printed on the Allowance/Deduction Listing report, pay advices, pay envelopes and pay slips for non-contributory superannuation codes.

 

A short description of the Allow/Deduct code used to print on pay advices, pay envelopes or pay slips, except for non-contributory superannuation codes.

The Classifications are supplied with Preceda and can not be changed, added or deleted.

• List of Classifications

 

The Allow/Deduct Type entered can be used to group like codes together for recipient processing.

Is this Allow/Deduct code to be used with the Protected Earnings?

Y	Include in the protected Earnings Amount calculation. The Allow Partial Deductions field must be set to Y
N	Do not include in the Protected Earnings Amount calculation

• This field is only available if the Allow/Deduct Code Classification is set to 4, 8 P or R.
• 4 - After Tax Deduction
• 8 - After Tax Deduction % of Net
• P - After Tax Deduction % Linked Earnings or Gross
• R - After Tax Deduction % of ASG

 

Preceda checks if the deduction is applied to an employee's net pay, results in that net pay being less than the minimum allowed. If so, Preceda may not apply the deduction, dependant on the priorities given and only applies to Deductions.

0	This deduction is mandatory, regardless of the effect on the net amount. If the resulting net pay is zero or less, the pay is dropped altogether. This is reported in the edit reports for the Payrun. This is the Default option.
1 to 99	The deduction may be left out according to the priority level. The highest priority is 1 and the lowest is 99. High level deductions are applied first after the mandatory deductions, followed by those deductions with decreasing priority levels.

 

Is this Allowance or Deduction to be included as part of the costing?

E	Exclude the Allowance or Deduction from the costing.
H	Include but Split Costs over Payrun using Hours Divisor This option is available to allow an Allowance/Deduction to be costed to the same cost structure as the hours worked for a particular pay separator. Example:- If an employee has a car allowance of $50 per week and during the course of the week, works 22.8 hours in department A and 15.2 hours in department B, the costs for the car allowance would be apportioned with $30 going to department A and $20 to department B.
I	Include this Allowance or Deduction in the costing. (default)
S	Include but Split Costs over Employee's Costing Split

 

The costing account number where allowance or deductions are to be posted.

• This cost account will override the account number entered in the Employee Costing window.
• This cost account will be overridden by an account number entered during a pay run while entering time card details.

 

Is this Allowance or Deduction included in the Super Gross?

Y	Yes - Include in Superannuation Gross
N	No - Do not include in Superannuation Gross

 

Is this Allowance to be included in the calculation of RDO payments?

• This only applies to an Allowance.
• The default is No.

 

A Period/Month print option that specifies, if the Allowance/Deductions report for the Payrun and Period End will include just the pay period figures just the monthly figures or both.

B	Print both period and monthly on PAY74 and PAYW74
M	Print monthly only on PAYM74
P	Print pay period only on PAY74 PAYW74

 

Print Flags are supplied with Preceda and can not be changed, added or deleted.

0	The value is not included separately on the Payment Summary.
1	Include this Allowance/Deduction code on the Payment Summary. It is printed in the allowances box on the Payment Summary and not included in the gross figure
2	LS A as a genuine redundancy, invalidity or app early retire scheme
3	Include this value in the total value for Lump Sum B printed on the Payment Summary
4	Include this value in the ETP Payment Summary
5	Include this value in the total value for Lump Sum D printed on the Payment Summary
6	Include this value in the total value for Lump Sum E printed on the Payment Summary
7	A Union/Professional Assoc fee value is included in the Deduction
8	Include this value in the union Fees area of the Payment Summary
9	Include this value in the total value for Community Development Employment Program CDEP Salary or Wages
A	Workplace Giving value included in Workplace Giving Total. The value is displayed as a separate amount below the Union Fees area of the Payment Summary
B	LS A is NOT a genuine redundancy, invalidity or app early retire scheme
C	Reportable Employer Superannuation Contributions
D	Exempt Foreign Employment Income
F	The value is included in total for Foreign Tax Paid

 

The default rate that the Allowance is calculated.

Only available if Classification O One Time Payment  is used.

• If the Allow/Deduct Code is for a Classification of O, the number of weeks over which the tax is to be spread can be entered.
• If a figure is entered into this field Preceda will use the ATO's option A method from the ATO NAT 7905 and NAT 10146 to calculate taxation.
• If left blank, or set to O zero Preceda will use the ATO's option B Progressive method from the ATO NAT 10146.
• If this field is left blank, or set to zero Preceda will issue a warning that option B will be used.
• Option B may be unreliable for taxation if the employee has changed tax codes or supplementary tax during the year.
• Option B should not be used for the first period of the financial year, or if the employee has no YTD earnings.
• This figure may be overridden during entry using the Tax Weeks Override field in the Overrides window.

 

Can this Deduction be partially deducted from the employee's salary to prevent their Net pay from falling below the Protected Net or zero?

Use the selected Rate Code instead of the Annual Super Gross value when calculating Superannuation.

• This field is only available for Allow/Deduct Codes with a classification of Q.

Example Base Hours = 38 The Allow//Deduct Code:- Use this Rate instead of ASG is set to Award Rate Employee Award Rate set to $13.50 Standard Allow/Deduct is set to 1 unit x 10 (%) 10% of Award Rate $13.50 = 1.35 x Base Hours of 38 = $51.30

The type of extra tax.

• This field is only accessible when the Classification is E Extra Tax.

E	Extra Tax
H	HELP - Higher Education Loan Programme
S	SFSS - Student Financial Supplement Scheme
P	Extra tax % of Linked Earnings or Gross

 

If the Allow/Deduct Classification is C this field will activate allowing the value to be applied to the relevant ETP window after the relevant tax has been calculated.

Have the system test for a set minimum value.

Y	Test for Super Minimum value
N	Do not test for Super Minimum Value

 

The set minimum value to test against.

Have the system test for a set maximum value.

Y	Test for Super Maximum value
N	Do not test for Super Maximum Value

 

The set maximum value to test against.

The Pay Frequency that the test will apply against.