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47 votes
Thanks for your patience, it’s been a little while since you raised this idea, so we wanted to check in. We've now reviewed this idea and have moved it to Gaining Support status. Our product team are keeping an eye on this idea and we will continue to share updates as things evolve.
Lisa Overend
supported this idea
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51 votes
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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Lisa Overend
commented
Xero Payroll NZ need to URGENTLY address this issue - this is a IRD Tax compliant Pre-Tax Reduction Salary Sacrifice Scheme they have with Workride. Xero needs to enable us to comply with this scheme without the need to remember to do a weekly entry for 1 year under Discretionary earnings that I have been told by Xero support to do it. This is not acceptable and needs to be addressed asap.
Does anyone know if there is any update on how to enter the weekly pre-tax salary sacrifice amount for the NZ Workride scheme for employees who have just purchased through this scheme? Without having to do manual deductions each week? Thanks.