After I input SALARY SACRIFICE FOR SUPER amount, the corresponding value will appear in deductions

Julie Piao

Hi，

In the new system, SALARY related data is input after July 1st, there is a problem, After I input SALARY SACRIFICE FOR SUPER amount, the corresponding value will appear in deductions after saving, and the final NET PAY amount will be correspondingly reduced, which is incorrect. May I ask how to solve this problem? Thank you very much!

Best Regards

Kris_Williams

Salary sacrifice can be shown as pre tax or after tax, if it’s pretax the amount of tax and net will change (at least this is what I believe to be the case)

Bruce

@Kris_Williams' comment is correct, although in practice the vast majority of salary sacrifice items are made pre tax (especially salary sacrifice superannuation) as there is usually little benefit by doing things post tax. In addition, every time salary sacrifice is introduced there is increased work load for the employer, so why bother if there is no real benefit to the employee.

@Julie Piao - some comments:

• the image you have posted looks as though you are using a program other than Reckon Accounts Hosted, perhaps Reckon One. You should post on the Reckon One noticeboard to get advice on the mechanics of setting up salary sacrifice in this program
• the data in your picture suggests to me that whatever program you are using, it is working properly. If you are treating sup'n as a deduction then the net pay should be reduced. In this case, because the person is not paying any tax then the reduction in net will be the full amount being sacrificed (irrespective of the basis of the deduction is pre or post tax).
• I notice that the amount shown for sup'n is 10% of wages which is also the current SGC rate. Is this coincidental? Is the employee also sacrificing 10% of salary? From the image, it could be interpreted that you have deducted 10% from the employee's wages to finance your SGC obligations, and it maybe that your calculations are incorrect. I stress that am uncertain as to exactly what is occurring in your case because the image you have posted is different to what I am used to in Hosted, where the record for the employee would show; Salary, tax, allowances, Deductions (for salary sacrifice), net pay and also show both two superannuation contributions being SGC sup'n and salary sacrifice sup'n. Given my lack of knowledge of your exact situation, please accept my apologies in advance if I have the bull by the horns.

Acctd4

Just to clarify ... "Salary Sacrifice" means pre tax - by definition, you are "sacrificing" a portion of your salary in return for a reduction in tax!

However, a "Deduction" into your Super is what it is when it's post (after) tax (just like anything else you might pay for with your net pay eg groceries etc) 😊

Julie Piao

I am sorry ! I am a little confused, I use the latest system( payroll), I have transferred the data from the old RECKON one, the employee salary in the example is $401.40, and the super is $40.14, the employee should be paid $401.4+$40.14, right? Now input the super amount, the system will automatically deduct the super amount , How should that pay to the employee now? when entering super in the system, the system automatically deducts$ 40.14 in DEDUCTION bar, and NET PAY becomes $361.14. Then, isn't the actual payment to the employee less? Normal super is super, and DECUCTION is not the same thing, why should it be automatically cut off from gross pay ? If there is no tax, I think the gross pay is the net pay .

Sorry for the trouble ! Thank you so much !

Acctd4

Yes, you are correct - If no tax is deducted, the gross & net are the same & that’s the amount you pay to the employee.

The Super calculates (10%) based on the gross pay in addition to this. This super amount then gets paid into the employee’s Super Fund, not direct to them.

Bruce

Julie

What program are you using?

Your image does not look like anything from Reckon Accounts Hosted (which is very different to Reckon One). Also your comment refers to a Deduction Bar - this is not a feature in Hosted which again suggests that you are using Reckon One.

In which case you should post your request on the Reckon One board, where you will be dealing with people who should have a greater degree of familiarity with the program you are using.

Rav

I've moved this post into the Payroll App category.

The info from Shaz, Bruce & Kris above is still valuable and valid to your situation @Julie Piao