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

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    25 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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    Callum Milburn commented  · 

    Hi David
    Can we get a quick fix so that this Discretionary Payment can be entered as a negative amount when we set it up under the payroll settings. Currently it only allows a positive number and this then results in a manual override every pay cycle.
    Also a start and finish date or fixed number of deductions would be useful.
    Thanks
    Callum