I want to enter a one off superannuation payment for the director.

I want to enter a one off superannuation payment for the director. He doesnt pay into super throughout the year. Do I just enter this as a bill and pay it that way. If so what tax code would I use. Thank you

Comments

cosmic

just use write cheque option , but to get TAX DEDUCTION it must hit your bank on 30th June

Nicole_8315329

Thank you for the prompt reply. Should I just leave to tax code blank though.

cosmic

YES , I would, make sure it hits the bank tonite

Nicole_8315329

thanks

Adrian_6974554

The amount should go through the payroll.

If it is for salary sacrifice is then should appear as a reportable amount on his payment summary.

To get a tax deduction the amount must be in the employees superfund account not just out of your bank account.

With Super Stream coming into effect tomorrow for all businesses that pay employees, it is more critical that super is processed correctly through payroll, and payments paid early to clearing house, so they hit the employees super account.

The only clearing house that says if they receive the contribution on 30 June, you are guaranteed to be able to claim the tax deduction is the ATO Small Business Clearing House.

Adrian

Reckon FAQs

Hi Nicole,

As Adrian has said, the salary sacrifice must go through the payroll module for that payment to appear on your Payroll Reports and on the director's payment summary. Do a special pay run for the director with only the additional pay and the salary sacrifice for a Net Pay of 0.00. Then go to Employess > Payroll Taxes and Liabilites > Create Custom Payroll Liabilities, to process the payment of the super salary sacrifice amount through your bank ledger account.

Hope this helps.

regards,
John

cosmic

Always seek advice of your engaged Tax Accountant to avoid any liabilities issues if you are not sure . As your Engaged Tax Agent is first line of contact if issues happens .