How do I establish a superannuation salary sacrifice for an employee?
A superannuation salary sacrifice reduces the PAYG tax that the employee pays but does not reduce the superannuation guarantee amount paid on their salary and wages.
The salary pay item is included in the SGL Calc pay item group.
The salary sacrifice pay item is used to deduct the sacrifice amount from the employees gross wages. It is included in the tax calculation and thus reduces the taxable total. It is not included in the SGL Calc pay item as super guarantee is paid on the pre-sacrifice salary.
When entering the employee pay you enter the normal salary then the salary sacrifice amount.
The salary sacrifice deduction means the employee will pay tax on the net amount ($1 300 in the example).
This shows that the salary sacrifice is reported separately to single touch payroll but will reduce the taxable income.
It is also reports the sacrifice as reportable superannuation.
Disclaimer: This information is of a generic nature intended to
assist in the use of the software. For specific advice regarding your
particular circumstances please seek assistance from your Accountant,
the Australian Taxation Office or your IT Consultant as appropriate.