Examples of Custom Pay Types
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      Creating a Workride Repayment Custom Pay Type

      This example shows how to set up a salary sacrifice custom pay type for your Workride ride-to-work benefit scheme.

      Updated: October 2024

      Do you offer a ride-to-work benefit scheme to your employees through a Workride salary sacrifice agreement? You will need to make the deductions from each pay as agreed with the employee. For example, your employee chooses a $4000 e-bike through the scheme, which calculates to a repayment of $77 per week over 52 weeks.

      Info - Blue Block (1)

      This deduction is exempt from FBT.

      Find out more about this benefit scheme and how to register here. 

      Let's break down this 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 tracking purposes.
       ✅ 

      This is a taxable deduction, meaning it reduces the employee's gross wages that tax is calculated on.

      *The employee can receive a 32-63% offset

      The custom pay type & timesheet should have the following:

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

      Here is an example setup:

      CPT_SalarySacrificeDeduction (1)

      • 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 instalment amount on the agreed day.
        • Take note of the repayment date. Our system does not count down to the final amount.
        • You can include this pay type in a custom report to keep an eye on repayments.
        • We recommend excluding this from the calculations for annual leave to ensure these calculations stay correct.
      • The timesheet summary displays all taxable deductions together with the standard pay as one combined Gross figure.
        • As this is a salary sacrifice deduction, note the difference in Gross, PAYE and KiwiSaver in the same pay without the WorkRide Instalment added.

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