Setting up deductions with KeyPay
KeyPay allows you to simplify your payroll by setting up deductions which can be automatically paid to a bank account or super fund as well as set to automatically expire after a certain date or time.
Getting started with deductions
The first thing you need to do to start using deductions is to setup your deduction categories. This allows you to setup specific deduction categories which can be tailored to the needs of your business.
To setup a deduction category:
1. From the “Business” menu select “Settings” and under the “Settings” menu, select “Deduction Categories”.
2. KeyPay will already setup 3 basic deduction categories for you (FBT, Pre-Tax Deduction and Post-Tax Deduction) you can edit any of these by clicking on the name of the deduction category. To add a new deduction category click the green “Add” button in the top right corner.
3. Enter a name for the deduction category and select whether it will be a pre or post tax deduction and click save.
Once you have setup your deduction categories they will now be available to be assigned to employees.
Setting up an indefinitely recurring deduction
Follow these steps setup a deduction that recurs indefinitely:
1. Find the employee that you want to create the recurring deduction for and under the “Pay Run Settings” section click “Deductions”.
2. From the deduction screen click “Add” and complete the details for:
- Select the deduction category
- The deduction amount – This is the amount to be deduction per payrun
- Any notes to show in the payrun
- Select “Never” for when the deduction should expire
- Select “This deduction should be paid manually”
3. Click Save Now, the next time you run a payrun that includes this employee the deduction will automatically appear.
Setting up expiring deductions
Setting deductions to expire is very similar to setting up indefinitely recurring deductions except when you fill out the section “When should this deduction expire” you need to choose one of the following options:
For a deduction that expires after a particular date, select “After the following date” and supply an expiry date.
For a deduction that expires after a specific amount has been paid, select “After the following amount has been reached”.
Once you have selected your expiry type click “Save”.
Setting up automated payments to Bank Accounts or Super Funds
KeyPay can not only automate the recurrence of deductions but can also automate the payment of deductions using the following methods:
- Paying to a bank account via ABA file (you must have your ABA details setup)
- Paying to a super fund via automated super payments (you must be registered for automated super payments)
Setting up an automated payment option is the same as setting up any other recurring deduction.
For a deduction to be paid to a bank account, under the section “This deduction should be: “ you need to select “Paid to a bank account” and then select the bank account to be paid to.
Deduction to be paid into a bank account will be appended to the ABA file generated in the payrun.
For a deduction to be paid to a super fund, under the section “This deduction should be:“ you need to select “Paid to a super fund” and then select the super fund to be paid to.
Deductions to be paid to a super fund will be included in the next super batch payment.
Pre-tax deductions assigned to a super fund will be treated as “Salary Sacrifice” contributions.
Post-tax deductions assigned to a super fund will be treated as “Member Voluntary” contributions.
Checking the status of a deduction
You can quickly see the status of expiring deductions by coming back to the employee deductions screen.
Once you’ve setup your deductions, a summary of the deductions will be displayed which will include:
- The amount or date at which the deduction will expire
- Whether or not the deduction has actually expired
- For amount based expiries, the current amount that has been paid
- The payment type setup for this deduction