Salary Sacrifice Superannuation

Sunstate_Fruits
Sunstate_Fruits Member Posts: 20 Reckoner Reckoner
in Reckon Accounts (Desktop)

I have set up an employee to Salary Sacrifice Superannuation $50 per week.

I note that the PAYG amount has decreased by $6, which is the reason for wanting to Salary Sacrifice Super, but I also noticed that their SG amount has also decreased by $5 even though the hours haven't changed. Is it correct that their SG amount would have or should have decreased, or have I set this up incorrectly?

Comments

  • Bruce
    Bruce Member Posts: 446 Professional Partner Professional Partner

    Definitely set up incorrectly. By law, SG cannot be reduced as a result of Sal Sac.

    Check the settings for your employee and make sure that there is nothing in there allowing SG to be reduced.

  • Kris_Williams
    Kris_Williams Member Posts: 3,736 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert

    There is a box somewhere that says to calculate SG on the wages before or after SS is applied, just can’t remember where that is. Will have a look as soon as I can

  • Sunstate_Fruits
    Sunstate_Fruits Member Posts: 20 Reckoner Reckoner
    image.png

    Thanks for the replies. It this is box you are referring to in the Employee settings: "Salary Sacrifice Items: Reduce Employer Contributions"

  • Kris_Williams
    Kris_Williams Member Posts: 3,736 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert

    Spot on, untick that and test it

  • Sunstate_Fruits
    Sunstate_Fruits Member Posts: 20 Reckoner Reckoner

    Thanks Kris, yes I did that and it worked!!!!! Thank you so much.

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