salary sacrifice to super

duckys

My salary sacrifice, is showing as "deduction", thus making my gross wage incorrect !!

swakhlu01 .

@duckys Accordingly in order to make Salary sacrifice super work as per the ATO policy, you will have to increase the gross wage to reflect the amount (keeping in mind salary sacrifice super should also incur Super guarantee from 1st Jan 2020). If I understand correctly, Reckon Payroll app will then apply the correct tax and deductions and super guarantee on the gross amount as part of the Payrun.

You will, however, need to be sure iwhether you are applying Salary Sacrifice super or Additional Employer super. I believe Payroll app is not geared up for handling Additional Employer super. You will have to work through that outside of the Payrun and tweak the EOFY reporting to capture any Additional Employer super contribution under the Reportable Employer Super Contribution (RESC) in the Employee's Income statement (reported to ATO)

But the Salary sacrifice super does get captured in the Income statement under RESC as part of Payrun as long as you are aware of the way it is handled in Payroll app.

duckys

So this is additional Employer Super, (sorry if I used the incorrect wording), which The Reckon One app I upgraded from, handled correctly ! Not sure what to do now !? The app needs to be updated to report this correctly, as did the old app !! Cheers

swakhlu01 .

@duckys I am guessing Reckon One is a more featured app and you may have been paying for it. However, Reckon Payroll App Basic (which is what I am assuming you are using based on the category of this post) is a free app. So in which case I would say it is not an Upgrade but downgrade.

If you are using Reckon Payroll app then as I suggested you may have to wait until EOFY reporting to provide the correct RESC amount for employer in ATO Income Statement by updating the initial YTD pay summary for employee before running the EOFY 21/22 payrun and not report salary sacrifice super in regular payruns. Unless Reckon provide the additional employer concessional super contribution as a new field in the meantime.

Maybe also have a chat to your Tax accountant.

duckys

This app needs a "reportable employer super contribution" item, that does not effect the gross wage and tax payable !!

ttyrrell

I am just entering my first payrun on the Reckon Payroll app, having updated from STP for year-end and am having the same issue. Can't work out how to show the Additional Employer Super/ RESC .... so I agree that they NEED to provide an option within the Superannuation components to Additional Super that is not salary-sacrifice. Will leave it out for now as suggested above

swakhlu01 .

@ttyrrell I was never able to use the old STP App to show RESC. How did one do it? Are you doing the first payrun for 2021-22 or the EOFY Payrun for 2020-21 using the Payroll app?

ttyrrell

@swakhlu01 . I’m entering the pay run for July 2021 in the Reckon Payroll App. In the old STP app you could just enter the total amount of Super paid each month, including both SGT and Employer Super as one amount, so it was at least equal to the amount paid to the Super Fund.

In the new Reckon Payroll app it automatically calculates the SGT and only allows for Salary Sacrifice Super so there is nowhere to include the Additional Super, so it won’t reconcile with the amount paid to the Super Fund.

I think you could create an Earnings item called Additional Employer Super that is not taxed and not included for SGT, it wouldn’t be included in the Super total, but at least it would be recorded. Would have to work out the adjustment for year end …. From the Earnings item to RESC,

swakhlu01 .

@ttyrrell Thanks for the clarification. As I recollect STP app would lump the entire Superannuation amount as Super guarantee amount in the employee income statement with ATO MyGov. This technically was incorrect.

In Payroll App the 10% Super guarantee in Payruns is reported correctly as Super guarantee contribution. However, it may not be necessary to put the additional super as salary sacrifice super. Have you tried to see what happens if a larger figure (>10%) is used in the SGT field? I don't have the need to try this as of now, but my understanding is Payroll app will allow you to use a larger rate in SGT and when reporting the Payrun to ATO apportion the 10% to Super Guarantee contribution and rest to RESC as additional super in the employee Income Statement at ATO Mygov. I think this is what you want to see.

ttyrrell

@swakhlu01 . You are right about the single Super amount in STP. The submission to the Super Fund correctly records the values for SGT and RESC, and that is reported to ATO as well.

Thanks for the idea, I’ll see what happens.

aakk

https://community.reckon.com/discussion/comment/20623364#Comment_20623364

@ttyrrell did you end up trying this and find out what happens?

ttyrrell

@swakhlu01 . yes I have been entering the SGT with a % the included SGT & additional super and it shows correctly when I submit it, but the Payment Summary still only shows SGT 10% so not sure what is going on behind the scenes. I am just going to keep doing this & see what happens at year end. I haven’t checked MyGov to see what has been reported, will do that when I am next on there. Cheers

swakhlu01 .

@ttyrrell thanks. That query was from @aakk 😉