How do I use Allowances and Deductions?
There is a limit of 10 Allowance and 10 Deduction category codes in Pay2k. The Allowance and Deduction Codes are designed to be generic groupings and can be attached to multiple transaction types. As there are a limited number of codes available, you need to set up codes that can be applied to a broad range of transactions.
An example of a good Deduction Code would be LAPTOPS AFTER TAX. This Deduction Code can be used with all the transaction codes for laptops after tax. The code LAPTOP FOR MR SMITH AFTER TAX would not be a good description for a deduction as it is specifically for one individual and its use is therefore quite limited.
For salary sacrifice items (other than superannuation) you need to set up one Deduction Code called SALARY SACRIFICE. You can then set up all your salary sacrifice transaction types and link them to this one Deduction Code.
For example: Some people have a motor vehicle salary sacrifice of 10% and others have a motor vehicle salary sacrifice of 5%. To record this you need to set up two transaction types and link them both to the same Deduction Code.
1. A transaction type for Motor Vehicle (Salary Sacrifice) 10%
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Select DEDUCTION as the Category
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Choose the SALARY SACRIFICE Deduction Code as the Allowance and Deduction Code
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Tick the SALARY SACRIFICE tick box
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2. A transaction type for Motor Vehicle (Salary Sacrifice) 5%
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Select DEDUCTION as the Category
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Choose the SALARY SACRIFICE Deduction Code as the Allowance and Deduction Code
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Tick the SALARY SACRIFICE tick box
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The two transaction types are now linked to same Deduction Code. The Salary Sacrifice Deduction Code can be used for all salary sacrifice transactions that are not superannuation related.
The context of the Allowance and Deduction Codes should not be changed during the year when there are Year to Date figures. Changes to the spelling of the Deduction Code name may be made provided they do not change the context of the deduction. For example, changing the name of a deduction from DONATION TO RED CROSS to CHARITY DONATION would be fine as the context of the deduction has not changed. However changing DONATION TO RED CROSS to TEA MONEY is not acceptable as the context of the deduction has changed.
The Allowance and Deduction Codes can be reset after the Payroll End of Year process has been completed and before you process the first pay for the next year. The Payroll End of Year is 30 June.
Once the Payroll End of Year has been completed, the amounts assigned to the allowance and deduction groups are reset to zero. Once these amounts have been reset you can change the way the allowance and deduction codes are used. If you make changes to the Allowance and Deduction Codes you will also need to check your transaction types as the Allowance or Deduction Code that they refer to may need to be updated.
www.tradingpost.com.au
Yes the Trading Post is now online! If you have something to sell or are looking for a second-hand item the Trading Post is a great resource.
The home page of the Trading Post website has a useful Help & Services section. It explains how to search for ads, how to place an ad, about the Trading Post and also provides Trading Post contact details.
To use the site you first need to select your state from the map of Australia on the home page. From here you will be taken to a page that allows you to search by keyword, or, alternatively, to search particular categories within the classifieds. The category search allows you to specify the following:
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The state and region you wish to search within
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The price range you wish to search within
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The age of the ads you wish to search
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Whether you would like the results to be sorted alphabetically or by price
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"Life is like a ten-speed bike. Most of us have gears we never use."
Charles M. Schulz, Creator of Peanuts
For more information, please contact:
Heather McKay
Human Edge Software
Phone: +61 3 9690 5004
Fax: +61 3 9690 2802
Email: pay2k@human-edge.com.au
Human Edge adheres to a policy of not sending unsolicited (SPAM) e-mail. You are receiving this e-mail because you are listed as a contact for a product or service that our organisation provides or have requested that this service be activated for you. If you are receiving this message in error or wish to have our records changed please advise us via return e-mail or call us on +61 3 9690 5044
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