PAYG Payment Summary

Excluding Deductions

Certain Deduction pay items may need to be excluded from the gross payments reported in the PAYG payment summary for an employee. Mapping a Deduction pay item to the Gross Payments field removes it from Gross Payments (the deduction being a mathematical subtraction).

To exclude Deductions pay items from Gross Payments:

1. Click Reports in the main menu.
2. Click Income Tax Payers Summary in the report list.
3. Select the appropriate reporting method and financial year.
4. Click Next.
5. When you are in the mappings screen, select Gross Payments from the pick list for the particular Deduction Pay item you want excluded from gross payments.

If you map a Deduction pay item to the Deductions or Workplace Giving summary fields (rather than Gross Payments), the YTD amount for the pay item will display under additional details in the PAYG Payment Summary as specified by the ATO. If you map it to Gross Payments, it’s YTD amount will be deducted from the gross payments.

Saasu saves your mappings every time you click Next in the Mappings screen. If you realize your PAYG payment summaries are incorrect, late, or lost, visit the ATO help page for further instructions.

Non-Deductible Allowance and Expense

Allowances or expenses paid to cover non-deductible items for an employee can be items such as normal home-to-work transport expenses. Verify with your Taxation Advisor what is deductible and non-deductible for your specific circumstance. When adding a Payroll transaction, there is a section called Other Pay Types. In this section, you will find Non-Deductible Allowance & Expense.

For example, you want to deduct $200/month from an employee’s salary to pay for their motor vehicle lease. The vehicle is owned by the employee and isn’t being used for work purposes in this situation (or if it is, the employee may be claiming a tax deduction for the work use portion themselves in their own tax return).

Before the employee had the vehicle:

After the employee had the vehicle: