Payroll Deductions

Payroll deductions in JobBag can be set up as either Before Tax or After Tax, depending on the nature of the deduction.

Before Tax Deductions

Before tax deductions are taken from an employee’s pay before tax is calculated.

Examples include:

• Novated lease (car) before tax deductions

These deductions reduce the employee’s taxable income.

After Tax Deductions

After tax deductions are taken from an employee’s pay after tax has been calculated.

Examples include:

• Staff deductions for personal expenses
• Novated lease (car) after tax deductions

Step 1: Create a Payroll Deductions General Ledger Account

Before setting up Payroll Deductions in JobBag, create a dedicated General Ledger account to track deduction balances.

Navigate toLedger > Chart of Accounts and select New or Clone.

We recommend creating the account as a Balance Sheet account, as payroll deductions typically represent amounts owed or held on behalf of employees until they are paid or reconciled.

Tip: Use the screenshot below as a guide when creating the account.

Step 2: Create and Map the Payroll Deductions Kind

Navigate to JobBag menu > Kinds > Payroll Category .

Create a Kind called Payroll Deductions and map it to the Payroll Deductions General Ledger account created in Step 1 in the overheads field.

Note: No SBR mapping is required for Payroll Deductions.

This Kind is used to record employee-related expenses that will be recovered through payroll deductions.

The Payroll Deductions Kind can be used when processing:

• Supplier Invoices
• Expense Claims
• Don't Credit Payments

When transactions are coded to this Kind, the expense is posted to the Payroll Deductions account, allowing the amount to be tracked and deducted from the employee's pay at a later date.

Tip: Use the screenshots below as a guide when creating the Kind and configuring the payroll mapping.

Step 3: Create Payroll Deduction Items

Create a payroll item for each payroll deduction that will be used within your organisation.

Payroll deduction items can be configured as either Before Tax or After Tax deductions. These items are added to employee payslips and used to recover amounts from employee pay.

Tip: Use the screenshots below as a guide when creating the payroll items.

Before Tax Deductions

Before tax deductions are deducted from an employee's gross pay before tax is calculated.

Example:

• Novated Lease (Before-Tax)

Payroll Mapping

Navigate toPayroll > Map Payroll Kinds  and map the payroll item to the Payroll Deductions account created in Step 1.

SBR Mapping

Navigate to Payroll > SBR Mapping, select the payroll item and configure the appropriate SBR mapping.

After Tax Deductions

After tax deductions are deducted from an employee's net pay after tax has been calculated.

Examples:

• Staff Deductions
• Novated Lease (After-Tax)

Payroll Mapping

Navigate to Payroll > Map Payroll Kinds and map the payroll item to the Payroll Deductions account created in Step 1.

SBR Mapping

Navigate to Payroll > SBR Mapping, select the payroll item and configure the appropriate SBR mapping.

Important: The Payroll Mapping and SBR Mapping must be configured correctly to ensure payroll deductions are reported and posted accurately.

Step 4: Add Employment Information (If Applicable)

Employment Information only needs to be configured for regular ongoing payroll deductions that are deducted automatically each pay period.

Examples include:

• Novated Lease (Before-Tax)
• Novated Lease (After-Tax)

When a payroll deduction is added to an employee's Employment Information, the deduction will automatically flow through to the employee's payslip each pay period.

Example: Automatic After-Tax Deduction

In the example below, the Novated Lease (After Tax) deduction has been added to the employee's Employment Information. As a result, the deduction is automatically included on each payslip.

Example: Manual After-Tax Staff Deduction

For one-off or irregular deductions, Employment Information setup is not required.

Instead, add the Staff Deduction payroll item directly to the employee's payslip and enter the deduction amount manually.

This approach is commonly used for:

• Personal expense recoveries
• One-off staff deductions

Payroll Deductions kind Structure

Should look a little like this