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Deductions

Key points

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    Deductions are amounts withheld from employee pays (other than taxes) and paid to a third party, such as child support payments

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    Deductions are set up as pay items and assigned to your employees to be included in their pays

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    You can set up one deduction for multiple employees, or individual employee deductions

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    For the rules governing workplace deductions, the Fair Work website is a good place to start.

Before or after tax deductions?

If you're not sure whether a deduction is pre-tax or post-tax, check with your accounting advisor or the ATO. 

There's a handful of deduction pay items which come with MYOB, including a Union Fee and One-Time Deduction. You can customise these to suit your needs and assign them to your employees, or create new deductions from scratch.

Let's step you through how to set up a deduction, and show you what a pay looks like with a deduction.

FAQs