Tax and Compliance Details for Australian Deductions

The following options in the drop-down list affects how the deduction impacts earnings and taxable wages:

• Memo: The deduction doesn't impact an employee's earnings or taxable wages. It shows in the Memo Information section of the earning statement.
• Post-tax: Dayforce withholds the deduction from the payment after it deducts employee taxes. For example, if an employee has $1,000 in earnings and a $100 post-tax deduction, their taxable wages are $1,000.
• Pre-tax: Dayforce reduces the taxable wages by the deduction amount before it withholds the employee taxes. For example, if an employee has $1,000 in earnings and a $100 pre-tax deduction, their taxable wages are $900.
• Salary Sacrifice: The employee has a reduced gross salary in exchange for non-cash benefits from their employer. The sacrificed amount is deducted before tax is calculated which can lead to tax savings for both the employee and employer.

Drop-down list containing the following options, depending on the option you select from the Tax Type drop-down list.

For the Gross Pay Deduction tax type, the available options are:

• Employee Salary Sacrifice (Other): (pre-tax)
• Employee Salary Sacrifice - Superannuation
• Fringe Benefit Tax
• Fringe Benefit Tax Exempt
• Workplace Giving

For the Net Pay Deduction tax type, the available options are as follows:

• Advance
• Loan
• Miscellaneous: this tax type ensures that the deduction definition is calculated on gross earnings before applying the PAYG tax for Australia
• Superannuation ER
• Union

For the Memo Deduction tax type, the following tax methods are available in Australia:

• Fringe benefit tax
• Fringe benefit tax exempt
• Reportable superannuation contribution
• Superannuation ER