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Payrun with all salary sacrifice wont submit

avagoavago Member Posts: 5

I am submitting payrun for 6000 salary sacrifice. No pay just super

They system puts in -6000 deductions and says I cant submit as negative salary.

I migrated from STP. I am a micro business.

I used to be able to submit just super. They system wont allow me to

Please help.

Comments

  • avagoavago Member Posts: 5

    I converted to the payroll ap from STP. I now cant do a payrun with 100Percent salary sacrifice super. The system puts it as a deduction and negative salary and wont let me continue. It is legitimate to sacrifice all salary to ss super. Please fix this bug.

  • SystemSystem Member Posts: 29 Community Manager
    This discussion was created from comments split from: Payroll App - Free Basic plan AVAILABLE NOW!.
  • RavRav Administrator Posts: 10,594 Community Manager

    @avago

    Just to clarify, are you inputting a salary sacrifice amount into the payrun but no actual salary/earnings item?

    You need to enter an earnings item and balance that is 'being sacrificed' in the payrun.

  • avagoavago Member Posts: 5
    edited June 11

    O k Thank you @Rav I did that but then had to put .000001 % as SG rate so it didnt auto add SG and so it put all to SS. So all good now

  • swakhlu01 .swakhlu01 . Member Posts: 27

    @Rav The topic of Superannuation Salary sacrifice entry in Employee Payrun using Payroll App seems very confusing. The FAQ is not very clear how this is done. Is there a Payroll App user manual online that clarifies this.

    Unless there is an incorrect logic used in the program - the employee earnings reported to ATO should not be impacted by the super salary sacrifice. Usually in salary packaging the pre-tax salary sacrifice amount is not added to the base salary and then shown as deductions. It is not meant to be reported as a deduction in ATO Tax statement. Just a separate amount under "Employer Reportable Super".

    Can this please be clarified.

  • Joseph LiJoseph Li Member Posts: 376 ✭✭

    @swakhlu01 . SG (currently 9.5% soon to be 10%) is calculated on (base salary + salary sacrifice super amount).

  • avagoavago Member Posts: 5
    edited June 12

    Yes but all is ss so sg is zero. System forces me to put in very low percentage. As a semi retired small biz owner I don't pay myself salary. I get super and dividends but pay my self the Max 25k ss into super.

  • Joseph LiJoseph Li Member Posts: 376 ✭✭

    @avago SG cannot be zero. When base salary is zero SG becomes a percentage of salary sacrifice super. Total super for the pay run = SG + salary sacrifice super. This is my understanding.

  • swakhlu01 .swakhlu01 . Member Posts: 27

    @Joseph Li Going by ATO website the payment summaries should not include salary sacrifice amounts under Gross payments.

    https://www.ato.gov.au/Forms/PAYG-payment-summary---individual-non-business/?anchor=H5#H5

    This page is as recent as April 2021.

    However, there is some conflicting information on ATO website regarding salary sacrifice super amount reporting and super guarantee effective Jan 2020.

    https://www.ato.gov.au/Business/Super-for-employers/Setting-up-super-for-your-business/How-to-set-up-salary-sacrifice-for-super/

    Maybe the Tax accountants on this community might be able to shed some light. This could imply the salary sacrifice super ammount has to be added to the Ordinary Earnings for calculation of SG. However, it is unclear under what category of deduction it is assessed so that the actual Income Tax is accurate.

    Unfortunately I am not able to find any webpage on ATO site that explains the fields of the Individual Income Statement as currently exisiting and accessible through myGov ATO account.

  • Joseph LiJoseph Li Member Posts: 376 ✭✭

    Salary is included in OTE, of course. SG is calculated on OTE. The Law allows people to sacrifice part of OTE into super, thus reducing taxable income.

    if payroll program cannot handle salary sacrifice into super employer should either upgrade payroll program or tell employees they cannot salary sacrifice into super.

    There is alternative to salary sacrifice into super, because after-tax contribution to super by employee is also tax deductible. Personally as employee I use this method.

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