> ## Documentation Index
> Fetch the complete documentation index at: https://documentation.2cloudnine.com/llms.txt
> Use this file to discover all available pages before exploring further.
# QRG Create Pay Codes - Deduction Pay Codes
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## Purpose
The purpose of this quick reference guide is to step through the process of creating Deduction Pay Codes. The intended audience for this document are System Administrators / Standard Users.
## Steps
### Create a Deduction Pay Code record
Pay Codes are applied to Pay Transactions, Payee Deduction Records and Purchase Leave Rules processed for an Employee.
The Deduction Pay Code record is used to define Pay Codes used for Deductions made for a Payee. The record holds General Information and Pay Code Setup details.
Create a new Deduction Pay Code record by following the below steps:
1. Click on the **App Launcher** icon (see Figure 1).
2. Go to the **Pay Codes** object by using the Search function (see Figure 2).
3. Click on the **New** button (see Figure 3).
4. Select the **Deduction** Record Type and click **Next** (see Figure 4).
5. Populate the following fields to provide the base details of the Pay Code (See Figure 5):
1. Populate the **Pay Code Name** field with a unique descriptor for the record.
2. Briefly summarise the Pay Code's purpose in the **Description** field.
3. Define the name displayed on Pay Advice PDFs for related Pay Transactions by populating the **Pay Advice Description** field.
4. Enter a value in the **Pay Advice Sort Order** field to define the position of related Pay Transactions on Pay Advice PDFs.
6. Populate the following required fields to define the conditions for the Pay Code:
1. Define whether related Pay Transactions should be calculated before or after PAYG tax is deducted during Pay Batch processing, by selecting from the **Deduction Type** picklist field.
2. Define the Pay multiplier used to calculate Pay Transactions for this Deduction by populating the **Pay Rate Multiplier** field.
3. Define the Deduction Type to be used by related Pay Transactions within STP Reporting by selecting from the **STP Deduction Type** picklist field.
7. Populate the following optional fields to define any additional conditions for the Pay Code:
1. If related Pay Transactions should be deducted from the total values of Payee Qualifying Earnings for Payday Super, select the **Deduction Reduces Qualifying Earnings** checkbox field.
2. If related Pay Transactions should be attributed to the Reportable Employee Superannuation Contributions, select the **Contributes to RESC** checkbox field.
3. To exclude related Pay Transactions from Pay Advice PDFs, select the **Exclude From Pay Advice** checkbox field.
4. If Payroll Tax needs to be reported for related Pay Transactions, select the **AU Payroll Tax Reportable?** checkbox field.
5. If regional Payroll Tax exemptions apply for related Pay Transactions, use the **Payroll Tax Report Exceptions** picklist field to select the appropriate value.
8. Click on the **Save** Button.
9. A new **Deduction Pay Code** is now created (see Figure 6).
**Important Notes — Deduction Pay Code Record Management**
Deduction Pay Codes CAN NOT be deleted if they have related records or are used in other records. Deleting records is not recommended unless absolutely essential.
A Pay Code can only be edited if it has not already been referenced within Pay Transactions, Interpretation Rules or Payee records. A new Pay Code will need to be created if updates are required after this point.
10. To modify an existing **Deduction Pay Code** record, open the required record and select the **Edit** button available on the top right side of the page. You can also double click in any of the fields that need editing or just click on the pencil icon that appears within fields when you move your cursor over the field.
11. When complete, click on the **Save** button.
# Field Descriptions
| Field Name | Description |
| :---------------------------------------- | :---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **AU Payroll Tax Reportable?** | Determines if the Pay Code will be considered during 2cloudnine Payroll Tax reporting processing. |
| **AU Payroll Tax Report Exceptions** | Where a Pay Code is reportable for Payroll Tax, list any localities here where the Pay Code is considered not reportable. |
| **Contributes to RESC** | When checked, amounts paid against this Pay Code are included in the Employee's Reportable Employer Superannuation Contributions (RESC) total reported to the ATO via STP and on the payment summary. |
| **Contributes to Dedn Qty Worked** | Indicates whether the units worked of this Pay Code will be summed during Pay Batch Calculation for the purpose of Quantity Based Deduction Calculation. |
| **Contributes to Total Quantity** | Indicates whether this Pay Code record contributes to the Total Quantity displayed in pay calculations. |
| **Description** | The description of this Pay Code. |
| **Deduction Reduces Qualifying Earnings** | Determines whether related Pay Transactions are subtracted from the Payees Qualifying Earnings for the purposes of Payday Super calculations. |
| **Deduction Type** | Indicates whether Pay Transactions created using this Pay Code will be calculated as Pre-tax Deductions or Post-tax Deductions |
| **Exclude From Pay Advice** | Indicates that any transactions related to this Pay Code will not be displayed on the standard Pay Advice PDF. |
| **Pay Advice Description** | The description that will be displayed to a Payee on their Pay Advice PDFs for any Pay Transactions related to this Pay Code. |
| **Pay Advice Sort Order** | Defines the order in which Pay Codes will be displayed on Pay Advice PDFs |
| **Pay Code Name** | The name given to the Pay Code record that is being created. |
| **Pay Rate Multiplier** | The multiplier which will be applied to Pay Transactions using this Pay Code. |
| **STP Deduction Type** | Defines how this Deduction Pay Code will be reported in STP Phase 2. |
| **STP Deduction Other Description** | Defines what description will be reported in STP Phase 2 when the STP Deduction Type is Other. |
# Further Information
| Document | Document Type | Description |
| :------------------------------------ | :---------------- | :------------------------------- |
| Create Pay Codes - Expense Pay Codes | Task Instructions | How to create Expense Pay Codes |
| Create Pay Codes - ETP Pay Codes | Task Instructions | How to create ETP Pay Codes |
| Create Pay Codes - Lump Sum Pay Codes | Task Instructions | How to create Lump Sum Pay Codes |
| Create Pay Codes - Payment Pay Codes | Task Instructions | How to create Payment Pay Codes |
