How do I setup NON-Super Salary Sacrifice as a Payroll Item in Enterprise: Prof Services 2016?

Jade
Jade Member Posts: 9
Hi, my organisation has been endorsed as a Public Benevolent Institution (PBI), and all employees will commence salary packaging soon. The tax free capped limit for us is (FBT Exemption Threshold) is $15,900 ($31,177 grossed up).  The salary packaged portion of their pay will be paid to an organisation called CBB and administered externally (so it is not going to their superannuation).

Our policy is to continue SG contributions based on the employee's original salary amount (before any pre-tax deduction).

The grossed-up value of all capped limit benefits will need to be reported on their Payment Summary as Reportable Fringe Benefits at the end of the year. 

How do I setup this Salary Sacrifice as a Payroll Item? (Addition, deduction, contribution???)

Thanks in advance!



Comments

  • Jade
    Jade Member Posts: 9
    edited September 2016
    Thank you Kevin!
  • Jade
    Jade Member Posts: 9
    edited October 2016
    Worked it out myself - here it is if anyone needs help in the future :)

    Payroll Item List > Payroll Item > New
    Payroll item type: Deduction
    Name used in payments and payroll reports: Salary Package
    Agency for employee-paid liability: CBB (or whoever administers your salary packaging)
    Enter the number that identifies you to agency: 1234
    Liability account: Wages Expense Account
    Tax tracking type: Reportable Fringe Benefits
    Taxes: PAYG Tax & State Payroll Tax
    Calculate based on quantity: Neither
    Default rate and limit: Amount is to be salary packaged (not including super salary sacrifice amount - that is done differently)

    Go to each participating employee and add "Salary Package item" to "Additions, Deductions and Company Contributions" field. You can also change the $ amount here for individual employees.

    Once you have processed pays, you will then need to go to "Write Cheques" and record the payment of the salary packaged amount to the salary package administering organisation; debiting the Wages Expense Account.

    Cheers.
  • Eileen Leonard
    Eileen Leonard Member Posts: 2

    Hi

    how do i record a computer loan repayment for my employee

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,395 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Hi @Eileen Leonard

    First, you need to have an (Other Current) Asset-type account set up for this loan, in your Chart of Accounts. Then, you need to create a Deduction-type Payroll Item:

    Link this to your Employee Computer Loan account above, ensuring Tax tracking type is set to None & make sure it has no Taxes selected & is set to calculate on net pay:


    Add this new Payroll Item to the employee's applicable pay along with the applicable amount to be deducted (You will be prompted to add it to the Employee record so it automatically comes up on each Paycheque):

    (NOTE: It's important to ensure this amount is NOT affecting Leave, PAYG Tax or Super)

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)