Set Up Employee Salary Sacrifice Deductions

You can configure employee deductions for salary sacrifice in the Deductions tab of Payroll Setup > Earnings and Deductions. These will be set up as net pay deductions.

Before You Begin: Make sure that you have completed the steps in "Set Up Superannuation Funds" in the Dayforce Implementation Guide.

Note: For more information on the fields and settings in this section, see Third Party Payees for Superannuation.

To set up employee salary sacrifice deductions:

1. Go to Payroll Setup > Earnings and Deductions and click the Deductions tab.
2. Click the General tab.
3. Select the Allow Payee checkbox. When you do this, the following occurs:
   1. The Payees tab is shown. In the Payee Category drop-down list, select Superannuation Scheme.
   2. The deduction definition updates to include the Payees tab, where you can select the payees that you defined in Payroll Setup > Third Party Payees.
4. Click the Tax and Compliance tab and select the Superannuation Employee system tax and compliance rule. This sets the deduction to be a net pay deduction.
5. In the Parameters tab, configure the deduction to be based off a percentage of the employee's earnings. You can define this percentage to be based off the earnings of an earning grouping. Configure earning groupings in Payroll Setup > Groupings.