This guide provides instructions to setup Deduction codes for Novated Lease payments.
Notes:
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You should follow the steps below in your TEST environment and test thoroughly before you implement in your LIVE production database.
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The screenshots have been taken from one of a Test database. Please change the codes and descriptions of your deductions as appropriate for your database.
Add Deduction for Novated Lease
Add a new deduction record with the following settings.
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Navigate to Organisation > Entitlements > Deductions.
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Right-click on any deduction to “Add Record”.
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Type in the unique code and Description.
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Set Taxable field to ‘Yes’ on Details ( i ).
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Save and Close
Add Deduction for FBT
Repeat the same steps again but this time we will create a Novated Lease POST tax deduction (for FBT).
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Navigate to Organisation > Entitlements > Deductions.
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Right-click on any deduction to “Add Record”.
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Type in the unique code and Description.
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Save and Close.
Add Permanent Deduction to employee record.
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Open the employee record to Payroll > Permanents tab. Click Edit and right-click to Add record.
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The Transaction View screen will open to Permanents area where you can right-click to Insert Deduction.
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Enter in the deductions and details as required for Novated Lease Pre tax deduction.
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Enter Begin date on Effective Dates tab and click OK.
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Repeat steps for Novated Lease Post tax deduction.
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Click X on top right to close Transaction View answer ‘Yes’ to save changes.
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Save and Close.