The employee allowance definition in this example reflects salary sacrifice. Because this works as a negative allowance (or like a deduction), it's treated as pre-tax in Dayforce. The allowance in this example is called "Salary Sacrifice Pension - EE."
The following table details some of the key settings of the allowance definition in Payroll Setup > Earnings and Deductions in the Earnings tab; images of this setup follow the table.
|
Setting |
Example Setup |
|---|---|
|
General tab |
|
|
Generated |
Checkbox is selected |
|
Display Earnings on Compensation Statement |
Checkbox is selected (in the Statement Overrides section) |
|
Tax and Compliance tab Note: You might need to create a custom tax and compliance rule in order to make the appropriate selections if existing rules aren't editable. |
|
|
Earning (Allowance) Type |
Salary Sacrifice |
|
United Kingdom |
Sub-tab displayed If you are creating a new tax compliance rule, select the United Kingdom checkbox. |
|
Statutory earnings |
N/A - no selection |
|
NI-able |
Checkbox selected |
|
Taxable |
Checkbox selected |
|
Is Pension |
Checkbox selected Note: The Is Pension checkbox should be selected for all pension scheme allowance definitions. |
|
Parameters tab |
|
|
Calculation Type |
Percent of Note: The Calculate Payroll background job is configured to run all of the calculations that would typically be performed by an expression. |
|
Access |
Pay Group or Employee Override |
|
Lookup Type |
N/A - no selection |
|
Pay Groups tab |
|
|
Pay Group |
Applicable pay group; in the example, the pay group is called "UK Weekly." |
|
Allowance Parameters |
Percent: No value entered here; the percentage is taken either from the benefit plan or the employee election |