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

Jade

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!

Jade

Thank you Kevin!

Jade

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

Hi

how do i record a computer loan repayment for my employee

Acctd4

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)