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  1. NZ Payroll - Option to create pre-tax deductions

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    23 comments  ·  Payroll & expenses » Payroll  ·  Admin →
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    Accepted  ·  AdminDavid Reynolds (Admin, Xero) responded

    Hi everyone, thanks for sharing your feedback on pre-tax deductions for salary sacrifice schemes like WorkRide. We appreciate you sharing how you’re currently managing these.

    Currently you can achieve the result of a pre-tax deduction in Xero payroll by using a Discretionary Payment category pay item and entering the deduction amount as a negative figure. Gross earnings are effectively reduced, eliminating the need for PAYE adjustments.

    We recognise that this workaround may not be a perfect fit for all schemes. While this feature is not yet on our immediate roadmap, we have updated its status to Accepted. This ensures it is flagged for formal consideration by our product team during future planning cycles. We'll keep you updated as things progress and value your continued input.

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    Napier Taxation commented  · 

    Hi Lisa, I contacted Xero 2 weeks ago and there was no update, so had to set up manually.

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    Napier Taxation commented  · 

    There's still no traction on this!
    As mentioned in previous comments 'this is IRD Tax compliant Pre-Tax Reduction Salary Sacrifice Scheme they have with Workride', so should be a part of any standard NZ payroll system.
    Entering the information manually each week only leads to human error and having to keep manual records for the reducing balance, to ensure the deduction doesn't overrun is an additional task open to human error.

    Napier Taxation supported this idea  ·