100% earning to Super?

Moses

I am self employed and and using Payroll Reckon.

Sometimes I would like to put ALL my earnings of the month to my Super Fund.

How can I do that, to have $0 earnings but $1000 either as "Salary Sacrifice for Super" or "Super Guarantee"?

I can manage to do the above as "Salary Sacrifice for Super" but there is always a -$1000 "deduction"?

Any one has any solution?

Much appreciated.

swakhlu01 .

@Moses There are some changes announced over last year or so by the ATO on how STP reporting must be done that specially impacts self-employed. If you have not already done so you may need to consult your tax accountant to get a clearer picture of what is expected. As far as Reckon Payroll app is concerned how you report your entire earnings as Superannaution is not a problem. I am assuming you are referring to pre-tax superannuation contribution in this context. The concessional component limit as set by ATO is $27500 for the current financial year.

a) Salary sacrifice entire earnings $1000

hourly rate: $1000, hours worked 1 hour, earnings calculated: $1000.

Salary sacrifice super: $1000

Super guarantee: 10% of earnings : $100

Deductions: $1000 Tax withheld: $0. Total super reported: $1100 (this is the amount you must deposit in superannuation fund)

b) Direct employer contribution to superannuation $1000

The current implementation of Payroll app does not support it as yet. You need to have a gross earnings of atleast $450 per month before you can do this on a regular basis. This is because even though you can alter the Super guarantee rate to above 10% upto 100% it does not calculate the super amount unless the monthly earnings are above $450. I believe Reckon was planning to have an updated version with this limitation removed or have a separate field for Reportable Employer super contribution. Not sure when?

Rav

The current implementation of Payroll app does not support it as yet. You need to have a gross earnings of atleast $450 per month before you can do this on a regular basis. This is because even though you can alter the Super guarantee rate to above 10% upto 100% it does not calculate the super amount unless the monthly earnings are above $450. I believe Reckon was planning to have an updated version with this limitation removed or have a separate field for Reportable Employer super contribution. Not sure when?

@swakhlu01 . Hopefully late January at this stage. Will come through as part of a larger piece of work that will introduce other functionality.

Mal_10864363

The above seems to beg the question of what is acceptable to report?

I am similarly self-employed and using reckon payroll. In the June 2022 quarter I’m paying myself $15,000 but want to pay employer superannuation contributions of $20,000. Software limits me to 100% of salary that is $15,000. Do I report that even though it is not the $20,000 I have paid?

Thanks.

swakhlu01 .

@Mal it is my understanding Reckon Payroll app is not designed for RESC related STP reporting that will suit your transaction. You may have to purchase an alternative product from Reckon for that purpose.

However, to an extent you can adjust the Initial Employee YTD figures and add the balance reportable superannuation amount there.

Mal_10864363

Thanks for the answer swakhlu01. I am a a sole proprietor that has searched the ATO for a suitable product and spent a number of hours setting up and submitting under this program. I appreciate that it is a free app but even so if it can't handle such a need you do have to wonder if this product is 'fit for purpose'.