The Payroll Adjustments (Allowances & Deductions) article details the steps for how to add both Allowance Set items as well as individual employee level allowances as well as how to use them to adjust payments for the staff.This article includes the following list of allowances and deductions examples that are commonly used in ClockOn.
- General Notes
- Backpay Allowance
- Before Tax Payroll Deduction
- Tax Rebate
- Additional Tax
- Super Salary Sacrifice
- Super Co-Contribution
- Pay Disbursements
- Child Support
- Per-Hour Allowances
- Per Day Allowance
- Per user-defined hour allowance
- Per-KM Based Allowances
General Notes
Super Earnings Base
If the amount is to be included in the Super Earnings Base be sure to check the Options button and ensure that the Include in Super Earnings Base option is ticked.
Payroll Tax
It is also important to note if the allowance amount is to be included in Payroll Tax. To check this use the Options button and ensure that the Include in Payroll Tax option is ticked as needed.
Pay In Next Pay Only
If this option is enabled then if an amount set against the allowance, it will revert to $0 once the next payroll has been processed. This option is useful in instances such as backpay or Bonus payments where you want to enter the amounts prior to starting the payroll.
Backpay Allowance
Pays an additional amount of $100 and includes options to pay payroll tax, super, and to only be paid in the pay period.
Before Tax Payroll Deduction
Deducts an amount of $100 from the current payroll this amount affects the payroll tax, and super, and will only trigger in the current pay period.
Tax Rebate
Reduces the amount of tax paid by the employee within the payroll and redirects that amount to the employee's net pay instead. The following example reduces it by $100 if this is available within the period.
Additional Tax
Increases the amount of tax that the employee is paying within the payroll. The following example will allocate $100 per payroll period from the employee's net payment to tax.
Super Salary Sacrifice
The following example shows how you can set up a portion of an employee's wage to be allocated as a salary sacrifice amount. In this example, the employee is allocating $100 per payroll period to salary sacrifice in order to reduce their before-tax income.
Please be advised that as of 01/01/2020 the ATO has indicated that Super Salary Sacrifice amounts are not to affect the employee's OTE or SGC amounts. As such you will need to ensure that the Include in Super Earnings Base option is unchecked as we do not want this amount to be removed from the OTE balance.
https://www.ato.gov.au/individuals/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/salary-sacrificing-super/
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Super Co-Contribution
The following example shows how to set up an after-tax Super Co-Contribution. This example will allocate $100 per payroll period from the employee's net wage to their superannuation fund.
Pay Disbursements
Pay disbursements are used to allocate a portion of the after-tax a separate bank account for items such as Loan Payment, Bank Deposit, Reimbursement (GST exclusive), Employee Purchase (GST exc), Reimbursement (GST inclusive), Employee Purchase (GST incl).
The following example shows a $100 amount is allocated to a separate bank account per week.
Child Support
There are two types of child support payments the first being "Garnishee" which is court-mandated.
The other is "Deduction" which is done voluntarily or by personal agreement.
Per-Hour Allowances
The following is an example of an allowance set to pay an employee an additional $10/h for any time worked after 5 pm.
This can easily be adapted to before a particular time, all day, or between a set time range.
Per Day Allowance
The following details an allowance for an additional $10/day if the employee works time after 5 pm.
Per user-defined hour allowance
Uses a set amount and allows the user to enter a custom number of hours at payroll.
The following example shows the settings for a $10 per user-defined hour allowance
At payroll the user can then indicate the number of hours for the allowance, in the following example, 10 hours has been entered.
Per-KM Based Allowances
The following is an example for a $5/km travel allowance.
This will give you the option to enter the KM directly onto the payroll
