1. Click the Business Settings menu.
2. Click the Payroll Settings submenu.
3. Click the Deduction Categories button.
4. Click the Add button.
    
5. Complete the following fields:
   • Name
   • Deduction type
   • Impact on SG calculations

• External ID
• Classification
• Expense general ledger mapping code
• Liability general ledger mapping code

1. Click the Save button.
   

1. Click the Business Settings menu.
2. Click the Payroll Settings submenu.
3. Click the Deduction Categories button.
4. Click the deduction category that needs to be edited.
    
   While you will remain on the Deduction Categories window, a form called Edit Deduction Category will now appear.
    
5. Make the required changes to the Edit Deduction Category form.
6. Click the Save button.
    

1. Click the Business Settings menu.
2. Click the Payroll Settings submenu.
3. Click the Deduction Categories button.
4. Click the Delete button (which is shaped like a red x).
    
5. On the Confirm Delete? window that will now appear, click the Delete button.
    

When setting up or editing a pre-tax deduction category, the Impact on SG calculations field controls how the deduction affects both superannuation and Qualifying Earnings (QE) reporting. There are three options:

• No impact The deduction has no effect on superable earnings or QE. Super Guarantee (SG) is calculated on the full (pre-deduction) earnings, and the deduction amount is included in Qualifying Earnings for STP reporting.
  Reduces ordinary time earnings/qualifying earnings The deduction reduces the employee's qualifying earnings (QE) in the pay run. This means SG is calculated on the reduced qualifying earnings amount, and the deduction amount is excluded from QE reporting via STP — consistent with the established method for OTE-based super calculations.
  Reduces Qualifying Earnings (remains superable) This option is for clients who want to keep paying SG on the pre-deduction amount, even though the deduction itself should not be reported as QE. When this option is selected:

SG is calculated as if the deduction had not been applied — the employee's superable earnings are not reduced by the deduction amount.

The deduction amount is still correctly excluded from Qualifying Earnings for STP reporting.

This allows a client to capture and pay the additional super they want, while still reporting QE accurately.

When a deduction is included in a pay run — either via a recurring deduction on the employee record, or added directly via the Actions button within the employee pay run — an Excl. QE checkbox appears against that deduction line.

Important Date Restriction: The Excl. QE checkbox only applies to pay runs with a Date Paid of 1/7/26 or later. Used in a pay run with an earlier paid date, the checkbox has no effect — the deduction applies strictly based on the underlying deduction category settings.

How the checkbox behaves by default:

• If the deduction category is set to No impact, the checkbox is unticked by default.

• If the deduction category is set to Reduces ordinary time earnings / qualifying earnings, the checkbox is ticked by default.

• If the deduction category is set to Reduces Qualifying Earnings (remains superable), the checkbox is ticked and greyed out / disabled — it cannot be toggled in the pay run. This is by design: because this option always excludes QE while keeping the deduction superable, allowing it to be toggled could cause SG and QE to fall out of sync for that pay run.

Overriding the default in the pay run (applies to the first two options only): Users can manually toggle the Excl. QE checkbox on or off directly within the pay run, regardless of the deduction category default:

• Ticking the checkbox excludes the deduction amount from qualifying earnings, reducing SG for that pay run.

• Unticking the checkbox includes the deduction amount in qualifying earnings, and SG is calculated accordingly.

This gives users an additional control to ensure qualifying earnings and super guarantee are reported accurately for each pay run — noting that this control is not available when the deduction category is set to Reduces Qualifying Earnings (remains superable), since the QE/SG treatment for that option is fixed.
How the checkbox behaves by default:

• If the underlying deduction category is set to Reduces ordinary time earnings / qualifying earnings, the Exclude QE checkbox will be ticked by default, indicating that the deduction is excluding the employee's qualifying earnings (and therefore reducing the super guarantee accordingly).
• If the deduction category is not set to reduce ordinary time earnings / qualifying earnings, the Excl. QE checkbox will be unticked by default.

Overriding the default in the pay run:

Users have the flexibility to manually toggle the Exclude QE checkbox on or off directly within the pay run, regardless of the default set on the deduction category. This allows you to adjust qualifying earnings reporting on a pay run-by-pay run basis where circumstances require it.

• Ticking the checkbox will exclude the deduction amount from qualifying earnings, reducing the SG for that pay run.
• Unticking the checkbox will include the deduction amount in qualifying earnings, and SG will be calculated accordingly.

This gives users an additional control to ensure qualifying earnings and super guarantee are reported accurately for each pay run.