Setup Novated Lease Deductions - Australia
This guide provides instructions to setup Deduction codes for Novated Lease payments.
Notes:
You should follow the steps below in your TEST environment and test thoroughly before you implement in your LIVE production database.
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.
Navigate to Organisation > Entitlements > Deductions.
Right-click on any deduction to “Add Record”.
Type in the unique code and Description.
Set Taxable field to ‘Yes’ on Details ( i ).
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).
Navigate to Organisation > Entitlements > Deductions.
Right-click on any deduction to “Add Record”.
Type in the unique code and Description.
Save and Close.
Add Permanent Deduction to employee record.
Open the employee record to Payroll > Permanents tab. Click Edit and right-click to Add record.
The Transaction View screen will open to Permanents area where you can right-click to Insert Deduction.
Enter in the deductions and details as required for Novated Lease Pre tax deduction.
Enter Begin date on Effective Dates tab and click OK.
Repeat steps for Novated Lease Post tax deduction.
Click X on top right to close Transaction View answer ‘Yes’ to save changes.
Save and Close.