These types of Allowances are for employees who have an arrangement with their employer to sacrifice a specified amount that lowers their Gross or Taxable Income.
The allowance will be set up as a deduction before tax.
Note: These instructions are not to be used for Superannuation Salary Sacrifice.
Go to Setup, Allowances, Add, Next.
Select Standard Allowance, Next.
Enter a Description, change the Type to Deduction, Frequency is set to Each Pay, Tick the Taxed box, leave the Amount as zero, and then the Deduction can be reused, Next.
STP Reporting screen, Reporting Group is Salary Sacrifice, Reporting Subgroup is O - Other Employee Benefit, Next, Next.
If you do not need to set up the General Ledger Details, click Next.
Confirm New Allowance Details page, click Finish to save.
To add to your employee wages processing:
Go to Employee, Select the Employee, Payments, Allowance, and Add.
From the Description drop down, select the deduction.
Tick the Override Default Amount box and in the Amount field, enter the value the employee wants to sacrifice each pay, Close.