Examples of Custom Pay Types
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      Creating a Non-taxable Rent Deduction Custom Pay Type

      This example shows one possible set up of a custom pay type for an after-tax rent deduction.

      Updated: October 2024

      Your employee is renting a room from you at $80 per week.

      Info - Blue Block (1)

      		 Remember: If you are also providing housing or an accommodation allowance as part of their package, your employee still needs to pay tax on the value of this allowance as this is a benefit.
      Follow this link to find out how to add this to their timesheet.

      Let's break down this Rent example.

      This deduction is:

       ❌  A regular payment I can use system pre-loaded pay types for.
       ✅ I prefer using a custom pay type for clarity on the payslip or/and reporting and tracking purposes.
       ✅  This is a non-taxable deduction, meaning after income tax has been calculated. 

      The custom pay type & timesheet should have the following:

       ✅  Custom pay type created in the *non-taxable section
       ✅ Rate: -1 (deduction rate is negative)| Per: unit
       ✅ Rent amount entered on timesheet as applicable

      Here is an example setup:

      S3CPT_RentDeduction

      • Create this custom pay type with a recognisable name in the Employee Profile - Pay Types tab and SAVE.
      • Select your recognisable pay type from the dropdown timesheet list.
      • Enter the rent amount on the agreed day.
      • The timesheet summary displays all non-taxable deductions together as one combined figure.
        • In this example, Aroha has two deductions from her Net pay: MOJ fine of $50 and her rent of $80 = deduction of $130 from her Net gives you the take-home pay of $358.40

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