Employer Additional Super

Kaye Member Posts: 4

Our client contributes additional super for their employee. This is not Salary Sacrifice, but an employer additional amount, but we can't see where to include this on the App.

Any assistance would be appreciated.



  • swakhlu01 .
    swakhlu01 . Member Posts: 483 Payroll App Expert Payroll App Expert

    I don't believe Payroll app has any provision to add Additional Super. But it might be useful to understand how it treats salary sacrifice super in the Payrun. Any amount entered in the Payrun under salary sacrifice gets deducted from the Gross earnings before the Tax is calculated. The Super Guarantee amount (10%) is also calculated on the Gross earnings. So you need to be mindful of this and ensure the Gross earnings reflects the total amount involved - normal earnings and the amount of Super Salary sacrifice.

    But this does not answer your issue of how to represent Additional super contribution in Employee payrun. It is also important to remember how these amounts are actually handled at the Employees Income Statement in ATO MyGov. It does not seem to matter whether you are paying Salary sacrifice or Additional Super to employee. These are captured as Reportable Employer Contribution in the Income statement.

    Perhaps a chat to a Tax accountant might help resolve how you want to apply the Payroll app in your situation, knowing the constraints I mentioned above. You might consider other options like editing Employee Initial YTD pay summary and including the Additional Super amount as "Salary sacrifice" amount which will show in the EOFY report for the period . But this will depend on the arrangement of when and under what circumstances the Additional super is payable to the employee. As I mentioned before any payment made as Salary sacrifice super amount ends up as Reportable Employer Super contribution in Employee Income statement.

    It would have been useful if Reckon provides some additional information in "How To" on how Payroll app manages the various entries in a typical Payrun especially the way superannuation is handled. https://help.reckon.com/article/20el8yr42i-reckon-payroll-app-creating-a-pay-run