How to create an Addition/Deduction

Additions and Deductions in Entire OnHire are used to apply/deduct amounts to shift calculations that are separate from hours worked.

The main difference between Additions/Deductions compared to allowances is it's solely used for adjusting payroll amounts and cannot be applied to invoices. For any adjustments outside of shift calculations you wish to apply to invoices please create/apply an allowance.

To create Additions/Deductions, follow the below steps.

1. In the Finance Portal select Master → Payroll → Additions Deductions

Open

The Additions and Deductions screen will load. 

2. In the bottom section of the screen enter your Addition/ Deduction settings.

Open

Addition: Is used when you wish to add an amount to the Members Pay.

Deduction: Is used when you are wanted to deduct an amount from Members Pay.

Code: This is the code that appears on Payslip (Maximum of 10 Characters recommended).

Description: Description field to define the allowance in addition to the Code.

Amount Type: Choice between $ or % depending on the type of Addition/Deduction.

Amount or Percentage: Field to define a set amount or percentage for automated calculations. Please note this is a default figure and can always be adjusted before applying to a Members pay.

Status: The status will control if the Allowance will be visible to users. Please note you are not able to delete an entry once created if an Addition/Deduction is no longer in use you can update the status to Inactive.

Once Off: If this box is ticked it will show the Addition/Deduction default setting to be a once-off. However, can always be adjusted if you need it to apply on multiple occasions.

Superannuation Payable: If ticked it will include this Addition/Deduction for superannuation calculations. 

PAYG Exempted: If ticked it will exclude this Addition/Deduction in the Members Tax liability calculations. 

Include in Payment Summary: If ticked it will include the Addition/Deduction to show in the end-of-year submissions to ATO.

Include in Payment summary - reportable employer superannuation contributions: This option is only available for Deductions. If ticked it will separate the deduction as an employer superannuation contribution.

Appear separately on group certificates: If ticked this will show the Addition/Deductions separately on the end-of-year submissions to ATO.

Once you have entered your correct settings select the Add

To Edit a previous entry

Double-click on the row and the details set will appear in the form section to update.

Once you have updated the details select the Update button to save.

If you have selected an Addition/Deduction to edit but no longer need to you can click on the Clear option and it will reset the form.

Examples of Additions and Deductions

Child Support Deductions

The Child Support Deduction is a fixed dollar amount for each pay period. The employer must report child support amounts to the Commissioner (ATO) on or before the employee’s pay date.

There are two different types of Child Support Amounts that can be reported through our Finance application:

1. Child Support Deductions (D)

2. Child Support Garnishees (G)

In the Additions and Deductions, a Child Support Deduction checkbox is shown. You can either select the Child Support Deduction or Child Support Garnishee checkbox to report the child support amounts. For deduction, select the Child Support Deduction checkbox, and for Garnishee, select the Child Support Garnishee checkbox.

The Appear separately on group certificates checkbox is selected by default in a disabled mode in case of the Child Support Deduction checkbox is checked.

For detailed information about Child Support Deductions, click the Link.

Addition - Termination Payment: Lump Sum A Type R

Termination Payment as Lump Sum A Type R is the type of payment that employers make to employees when their engagement with the employer ends.

The Lump Sum A, Type R payments are to be reported for all the unused annual leaves or annual leave loading and the component of long service leaves that accrued from 16th August 1978 and are paid out on termination only for genuine redundancy, invalidity, or early retirement scheme reasons. You must report all the Lump Sum payments separately as Lump Sum A Type R in your STP Phase 2 report .

For employment termination cases, the employer needs to report two additional field details to the ATO through the STP pay event file. These two fields are:

• Cessation Date - This is the date when the employee’s engagement with the employer ends

• Cessation Type - When a cessation date is reported in a Pay Event, a Cessation Type code must also be reported. The Cessation Type code selected should be either ‘R' (Redundancy) or 'I’ (Ill Health)

In the Reasons (Personnel) Master of the Staff portal application, the Cessation Type Code for the Lump Sum payments are mapped from the Subgroups 'MBR TERMINATED' in the Reason Category, and the Reason Category selected can be either Ill health (I), or Redundancy (R).

To map the Lump Sum A Type R addition, open the Additions and Deductions master screen and select Master → Payroll → Additions Deductions.

In the Additions and Deductions, a Lump Sum A Type R checkbox is enabled only in the case of Additions. The Lump Sum A Type R addition is also shown in the grid and the default value selected is False.

To know detailed information about the Lump Sum A Type R addition in the STP Phase 2, click the info icon as shown in the figure below.

In case you are reporting the Lump Sum amount in your STP, you need to select the Addition as Lump Sum Code A Type R in the Addition and Deduction master screen and map the addition in the Single Touch Payroll Allowance Codes Mapping screen.

• Click STP → Allowances Mapping and Single Touch Payroll Allowance Codes Mapping screen opens

• Now, you need to map Codes defined by ATO for Allowances/Deductions with the Codes available in the System for Allowances/Additions/Deductions for Lump Sum A Type R addition

• Map addition type as Lump Sum Code A Sub Type R as defined by ATO

• Additions that are checked as Lump Sum A type R in Addition/ Deduction Master are allowed to be mapped with Lump Sum A, Type R code in Allowance Codes Mapping screen else validation message appears

For detailed information about Lump Sum A Type R addition, click the Link.