Allow/Deduct Codes

Enter a two-character code that represents the Allowance or Deduction.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

Enter the description of the Allowance or Deduction code.

The description is printed on the Allowance/Deduction Listing report, pay advices, pay envelopes and pay slips for non-contributory superannuation codes.

Enter a short description of the Allow/Deduct code used to print on pay advices, pay envelopes or pay slips, except for non-contributory superannuation codes.

Select from the drop-down the category of the Allow/Deduct Code. The list of Classifications is controlled by Preceda and cannot be edited or deleted by users.

You can check if the code is configured correctly by navigating to the Single Touch Payroll Health Check screen and refreshing the data.

For the list of Classifications, you may see the Classifications Page.

For the list of valid combinations of Allow/Deduct Classifications and Year End Print Flags, kindly see this page.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

This field is used in the Dayforce Data Load Extractor views for Earning Elections, Earning YTD, Legacy Company Totals and Legacy Employee Earnings to assist with the transition of a Preceda customer to Dayforce.

The Allow/Deduct Type entered can be used to group codes together for recipient processing.

Note: When modifying this field, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

Preceda checks if the deduction is applied to an employee's net pay, results in that net pay being less than the minimum allowed. If so, Preceda may not apply the deduction, dependent on the priorities given and only applies to Deductions.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

Is this Allow/Deduct code to be used with the Protected Earnings?

By default, this field is read-only and becomes editable only when all the following conditions are met:

• The selected Allow/Deduct Code Classification is set to 4, 8 P or R.

  • 4 - After Tax Deduction

  • 8 - After Tax Deduction % of Net
  • P - After Tax Deduction % Linked Earnings or Gross
  • R - After Tax Deduction % of ASG
• The Deduction Priority must be set to 1.
• The Allow Partial D Deductions is set to Yes.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

Is this Allowance or Deduction to be included as part of the costing?

Code	Description
E	Exclude the Allowance or Deduction from the costing.
H	Include but Split Costs over Payrun using Hours Divisor This option is available to allow an Allowance/Deduction to be costed to the same cost structure as the hours worked for a particular pay separator. Example: If an employee has a car allowance of $50 per week and during the course of the week, works 22.8 hours in department A and 15.2 hours in department B, the costs for the car allowance would be apportioned with $30 going to department A and $20 to department B.
I	(Default) Include this Allowance or Deduction in the costing.
L	Costing Splits based on Linked Earnings
M	Daily Costing Splits based on Linked Earnings
S	Include but Split Costs over Employee's Costing Split

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

The costing account number where allowance or deductions are to be posted.

• This cost account will override the account number entered in the Employee Costing window.
• This cost account will be overridden by an account number entered during a pay run while entering time card details.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

If the Classification affected by this field is a deduction, it will be taken out of the Gross Pay.

If the Classification affected by this field is an allowance, it will add this to the employee Gross Pay prior to calculating the Super amount for the employee where the Super is calculated as a % of linked Earnings or Gross.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

This button, when clicked, directs to the SGC OTE screen.

The label (i.e. Currently defined in X of Y SGC Rule/s) next to the button describes how many SGC Rules are defined where 'X' refers to the count of the Hours Code configured in SGC rules and 'Y' refers to the count of SGC rules currently defined.

This button is visible when Program Control PAY29 Position 20 is set to Y.

Is this Allowance to be included in the calculation of RDO payments?

• This only applies to an Allowance.
• The default is No.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

A Period/Month print option that specifies, if the Allowance/Deductions report for the Payrun and Period End will include just the pay period figures just the monthly figures or both.

Print Flags are supplied with Preceda and cannot be changed, added or deleted.

You can check if the code is configured well by navigating to the Single Touch Payroll Health Check screen and refreshing the data.

For the list of valid combinations of Allow/Deduct Classifications and Year End Print Flags, kindly see this page.

This field is used to select the type for the Allowance or Deduction according to the Australian Taxation Office (ATO) schedules for A/Ds. This is used for grouping payments within STP reporting to the ATO.

This field is only editable for ATO Reportable Allowance and Deduction codes. When a valid combination of Classification and Year End Print Flag is selected, the drop-down list will display the valid options to select from. Some will automatically default and grey out where there is only one valid option (e.g. FEES and WORKPLACE GIVING). For all other codes, this field will be greyed out.

You can check that the code is configured well by navigating to the Single Touch Payroll Health Check screen and refreshing the data.

Valid Combinations

Below is a table displaying the Classification - Year End Print Flag combinations and the corresponding valid STP A/D Type values available for selection. For the Year End Print Flag description, kindly see the Year End Print Flag field above this STP Allow/Deduct Type field.

A/D Code Configuration				Drop-down Box Values of the STP Allow/ Deduct Type
Classification	Year End Print Flag	No Tax Calculated		CA (CAR)	T (TRANSPORT)	LA (LAUNDRY)	ME (MEALS)	TV (TRAVEL)	OH (OTHER)	FE (FEES)	WG (WORKPLACE GIVING)
Allowances
1 Before Tax Earnings	1 Include this A/D Code in the Payment Summary. It is printed in the Allowances box and not included in Gross.	N		V		V	V	V	V
2 Non-Taxable Earnings		N		V	V	V
2 Non-Taxable Earnings		Y		V	V	V			V
Y Before Tax Earnings % of Linked Earnings or Gross		N		V		V	V	V	V
Z Non-Taxable Earnings % of Linked Earnings or Gross		N		V	V	V
Z Non-Taxable Earnings % of Linked Earnings or Gross		Y		V	V	V			V
Deductions
4 After Tax Deduction	8 Include this value in the union Fees area of the Payment Summary.	N							V
8 After Tax Deduction % of Net		N							V
P After Tax Deduction % Linked Earnings or Gross		N							V
R After Tax Deduction % of ASG		N							V
4 After Tax Deduction	7 A Union/Professional Association fee value is included in the Deduction.	N							V
8 After Tax Deduction % of Net		N							V
P After Tax Deduction % Linked Earnings or Gross		N							V
R After Tax Deduction % of ASG		N							V
3 Before Tax Deduction	AThis is included in the Workplace Giving Total. The value is displayed as a separate amount below the Union Fees area of the Payment Summary.	N								V

 

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

This check-box allows you to indicate whether the allowance will have a zero tax rate.

This tick box is only available when the Classification is set to 2 or Z and Year End Print Flag is 1. When this is ticked, the OTHER option in the STP Allow/Deduct Type will be made available for selection together with CAR, TRANSPORT, and LAUNDRY. This box is not ticked by default.

Note: Only check this box when configuring a Taxable Allowance with zero tax rate.

You can map employees payments into the disaggregated STP Payment Type Codes across Hours Type Codes and Allow/Deduct Codes in Preceda along with Leave Reasons.

This field is enabled once a valid combination of Classification and Year End Print Flag is keyed in based on the Validation Matrix.

The available options listed in this prompt are predefined. When there is only 1 valid option, the value is defaulted and the field is not editable.

This field is mandatory when *PP_STPPHASE2 Position 1 = A.

Here is the ATO Employer Guide for your reference.

You can map employees payments into the disaggregated STP Payment Type Codes across Hours Type Codes and Allow/Deduct Codes in Preceda along with Leave Reasons.

This indicates to the ATO where the amount should display on the employees Income Statement and assists with prefill for Tax Accountants when employees submit their tax return. However, any Job Keeper codes do not require this field as they have specific ATO descriptions required.

The available options listed in this prompt are predefined. The following table outlines some examples of what should and should not be included as another allowance. When there is only 1 valid option, the value is defaulted and the field is not editable.

This field is mandatory when STP Payment Type = Other Allowances and *PP_STPPHASE2 Position 1 = A.

During STP Reporting, these are grouped together so only 1 total $ is reported against each ATO Other Category per employee. When STP Reporting an Other Allowance with an ATO Other Category specified, the A/D Codes description is replaced with the ATO Other Category value in the XML file.

This displays the default rate used in the calculation of Allowance.

The default Allowance Rate is to be used only when the Standard Rate on the employee A/D record is 'zero' and the Standard Units is at least 'one'.

To ensure that employees are paid with the correct rate, an Effective Date button is available in this field. When clicked, an Allowance Rates Drilldown window allows the user to enter the Effective start date, Change Reason, and Allowance Rate value as well as the option to select a Salary Code Allowance Rate Code.

Default Allowance Rate

Enter an effective dated Allowance Rate to use.

• When creating a new Allow/Deduct Code record, the From on the effective dated Allowance Rate will be '01/01/0001'.
• When a rate is changed in this field, a retrospective pay will be triggered under the following conditions:
  • The Effective From date is before the employee's Paid Up To date, and
  • The employee's Masterfile (PAYMAS and/or E010 file) rate is 'Blank'.

Salary Code Allowance Rate Code

This displays all distinct Allowance Rate Codes available for Annualised Salary type of Industrial Agreements.

A change in Salary Code Allowance Rate Code will impact the Annualised Salary. A change in rate therefore flows through the time details retrospectively or not.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

When the field is ticked, the specific A/D Codes YTD amount will display on the Pay Slip.

Note that if the A/D code is a consolidate set up, the display option of the Primary A/D code will override of all group item's display option.

This field determines if the A/D code needs to prorate or not.

Proration will only be available for the following A/D Classifications:

Where an A/D Code is used as A/D by Worked Hours, the Prorate flag will be ignored, and the rate to be used is the applicable rate as of that date.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

This field is only available if Classification O One Time Payment is used.

• If the Allow/Deduct Code is for a Classification of O, the number of weeks over which the tax is to be spread can be entered.
• If a figure is entered into this field Preceda will use the ATO's option A method from the ATO NAT 7905 and NAT 10146 to calculate taxation.
• If left blank, or set to O zero Preceda will use the ATO's option B Progressive method from the ATO NAT 10146.
• If this field is left blank, or set to zero Preceda will issue a warning that option B will be used.
• Option B may be unreliable for taxation if the employee has changed tax codes or supplementary tax during the year.
• Option B should not be used for the first period of the financial year, or if the employee has no YTD earnings.
• This figure may be overridden during entry using the Tax Weeks Override field in the Overrides window.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

Indicate if this deduction be partially deducted from the employee's salary or not to prevent their Net pay from falling below the Protected Net or zero.

• If a partial deduction is ticked, then when it goes in the sequence, it will deduct as much as it can.

• If this is not ticked, it will only deduct the full amount. If there is insufficient pay, and the Deduction Priority is not 0, it will drop the deduction and move to the next in the sequence. When the Deduction Priority is 0, the deduction is mandatory, regardless of the effect on the net amount. If the resulting net pay is zero or less, the pay is dropped altogether.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

This field specifies if the Hours Amount and/or hours rate associated with this A/D Code is to be printed on Security Pay Advices.

• In the case of Allow/Deduct codes, the option selected by default is Blank.
• When set to be printed, the Rates of A/D Codes with Classifications '8', 'P', 'Q', 'R', 'S', 'V', 'W', 'Y', and 'Z' will be printed as a percentage with the percentage symbol (%) next to it.
• Note that if option 'N' is selected for an A/D code with Classification that is not 'N', 'Q', or 'S', an error message Print on Pay Advice value of 'N' is only valid for A/D Codes with Classification 'N', 'Q', or 'S' will be displayed.

Use the selected Rate Code instead of the Annual Super Gross value when calculating Superannuation.

• This field is only available for Allow/Deduct Codes with a classification of Q.
  Example

  Base Hours = 38

  The Allow//Deduct Code:- Use this Rate instead of ASG is set to Award Rate

  Employee Award Rate set to $13.50

  Standard Allow/Deduct is set to 1 unit x 10 (%)

  10% of Award Rate $13.50 = 1.35 x Base Hours of 38 = $51.30

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

The is a type of Extra Tax. This field is only enabled when the Classification is E (Extra Tax).

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

This field is activated when the Allow/Deduct Code Classification is 'C', allowing the value to be applied to the relevant ETP window after the relevant tax has been calculated.

For the definition on age, tax percentage, and threshold of every ETP Code, see this ETP Tax Page.

NOTE: Tax Free ETPs, which can be identified by Allow/Deduct Code with Classification C and ETP Type of TF, do not automatically have the ETP Payment Code assigned to them. Users must choose the appropriate code from the list on the ETP window after the payment has been processed and appears on the ETP window.

There are other ETP Payment Codes which are also not automatically mapped to an ETP Type. These are B, P and S.

• To achieve a B, process the ETP against the A/D Code where the ETP Type is DN. When it appears on the ETP window, you will need to manually update the Payment Code to B from the prompt list.
• To achieve a P, process the ETP against the A/D Code where the ETP Type is LN. When it appears on the ETP window, you will need to manually update the Payment Code to P from the prompt list.
• To achieve a S, process the ETP against the A/D Code where the ETP TYpe is LB. When it appears on the ETP window, you will need to manually update the Payment Code to S from the prompt list.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

If the Minimum value is set to $80, and the Minimum Test flag is set to 'Y', any employees who have super contributions less than $80 will have the $80 paid to their Superannuation Fund.

Indicate if the system is to test for a set minimum value or not.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

Specify the set minimum value to test.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

Specify if the system will test for a set maximum value or not.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

Enter the set maximum value to test .

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

Specify the Pay Frequency that the test will apply to.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

This field is only displayed if Preceda Variable *RETRO_PAY Position 1 = 'C'.

This flag determines how a retrospective payment is to be made as an allowance code.

When creating or cloning a code, this field will be set to 'Y' or 'N' based on the Classification. Any Classification included in the Retro Pay module is set to 'Y' by default.

The code is an A/D code with Classification 'O' to enable One Time Payment Tax Rules (at Marginal Rates).

If the Allow/Deduct Code does not have a Retro Pay Code attached (saved), retrospective calculations cannot be made against the original code.

Notes:

• The display and processing of this field is determined by Preceda Variable *RETRO_PAY Position 1 is set to 'C', and all other Positions is Blank.
• When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

This field is only available when the Preceda Variable *RETRO_PAY Position 1 is left blank.

This field determines how a retrospective payment is to be made using the original A/D Code.

• Ticking this box means that retrospective pays will be calculated on the selected code. If the corresponding Allow/Deduct Code does not have a tick on this Retro Pay field, retrospective calculations will not be made on the original code. By default, this field is ticked.
• The OTP Weeks for Retro Tax field determines the number of weeks to apply (i.e. 52 weeks) on the calculation.

Notes:

• This field is only available when the Preceda Variable *RETRO_PAY Position 1 is left blank. If Positions 2-3 are set to 'r_', retrospective payments will be made using the original code with a prefix 'r_' (e.g. QUARTERS will become r_QUARTERS). If this is left blank, no prefix will be added to the description of Allow/Deduct Code when displayed on the pay slip.
• The display and processing of this field is determined by Preceda Variable *RETRO_PAY Position 1 is set to 'C', and all other Positions is Blank.

• This is always unselected and not editable for % Based Super Liability codes - these are not processed in retro - the payrun handles the super calculation.

  % Based Super Liability Code

  Classification	Year End Print Flag	Allow/Deduct Type
  Q	0	Blank
  Q	0	EC
  Q	0	SG
  Q	0	SUPR
  S	0	Blank
  S	0	EC
  S	0	SG
  S	0	SUPR

This field manages the tax calculations for imported or manually keyed retro transactions on Retro Entry via Single Screen.

This field is enabled when the Retro Pay field is ticked.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.

When the Retro Pay is calculated (i.e. Retro Pay field is ticked), this displays the number of weeks to be used to calculate the One Time Payment Tax.

By default, this field displays a value of '52'.

This field is only used when the Retro Pay field is ticked and the Use Actual Tax Weeks field is left unticked.

Note: When modifying this field or deleting the selected AD Code, a Warning Message will pop up. You can either continue to save your changes via ticking the declaration box, or cancel the update and create a new AD Code instead. For more information and a list of areas to consider when creating a new Code, see this Page.