How do you add an employee with a novated lease into payroll? Is it under the Salary sacrifice (other employee benefits) in the Pre-tax deduction menu?

Hi H3lpm3pls,

Thanks for posting in the Community! Yes, you can set up a deduction category with payment classification Salary sacrifice (other employee benefits). This refers to an effective salary sacrifice arrangement, entered into before the work is performed, for benefits other than for superannuation, where the sacrificed salary is permanently foregone, e.g. novated lease, gym membership, workplace giving donations, car, property (goods, land, buildings, shares and bonds), expense payments (loans, school fees, childcare costs and home phone costs) and work-related items such as portable electronic devices and equipment.

Once you set up this deduction category on your payroll settings, you'll be able to select it when creating a pay run for an employee. Here's how:

1. Open a pay run and select an employee.
2. On Actions button select Make a deduction.
3. Select a deduction category and enter amount. 
4. Select Save.

For more detailed information, you can check on this article: Update deduction categories for STP Phase 2.

Let us know if you need further assistance with setting up a deduction category. Have a great day!