Salary Sacrifice into Super in AccountHosted

Larisa
Larisa Member Posts: 39 ✭✭

Hi

Can anyone please assist me, I have a new staff member that would like to salary sacrifice $25 from his wages into his super account but I do not know how to set that up in Reckon Account Hosted, could someone please help 🙏

thanks Larisa

Comments

  • Bruce
    Bruce Member Posts: 439 Professional Partner Professional Partner

    @Larissa

    Set up a new payroll item, say "Sal Sac XYZ Fund". The process is quite logical, but a couple of points:

    • the Agency is the name of your supn clearing house, not the fund
    • tax tracking must be "gross payments" to get the tax benefit
    • taxes should be ticked for "payg tax" and in Victoria "state payroll tax".

    Then add this payroll item to the employee's record. It is here that you will enter the $25 amount. Note that Salary Sacrifice supn CANNOT be used to Reduce Employer Contributions

  • Larisa
    Larisa Member Posts: 39 ✭✭

    Hi Bruce

    Thanks so much for the reply, it is a little complicated and I have just a few questions please:

    • I assume that i set up the new payroll item as a "super contribution" or should it be under wages?
    • I have named the item "Super Sacrifice NAME OF FUND"
    • For super contribution field, I selected "salary sacrifice"
    • In the name of the agency field, I entered "ATO Super Clearing Account" (which I newly created), as we pay our super thru the ATO portal
    • In the Liability account, I have entered as "Payroll Liability: Super Payable"
    • The Tax Tracking field, I have entered as "gross payment" as you suggested
    • With the taxes fields, I ticked PAYG but left payroll tax unticked as we do not pay it
    • And the rest of the fields on the next few pages I left blank

    I would appreciate your help in confirming if this is correct?

    But then where do I add this in the employee record, under SUPER DETAILS? And enter the employees super fund details? And how does the $25 get deducted out of his wages total?

    Sorry for all these questions, I have never been asked to do this before.

    Much appreciated.

    thanks Larisa

  • Bruce
    Bruce Member Posts: 439 Professional Partner Professional Partner
    • yes, superannuation contribution, not wages
    • are you not paying Payroll Tax because your category of employer is EXEMPT by law or because your total salaries are less than than the payroll tax threshold? If the latter, you should be ticking Payroll Tax (assuming superannuation contributions attract payroll tax in your state). Similarly you should be ticking payroll tax for all employees and their salary. This doesn't mean that you have to pay the tax or that it is recorded in your accounts. What it does mean is that should you ever go over the payroll tax threshold, then the system will provide you with reports to help you to determine the amount actually due.
    • yes, you update the employee record under Super Details. Just add the new salary sacrifice item under the existing superannuation guarantee item? Enter the $25 in the rate box.
  • Larisa
    Larisa Member Posts: 39 ✭✭

    Hi Bruce

    Thank you sooooo soooo much for your help, I followed your instructions and it has worked a treat. I am so grateful for your help, thank you again 🙏 I have also ticked the payroll tax box as you advised, because down the track we might reach the threshold as you indicated. Thanks again!!!