Superannuation Salary Sacrifice

markng

For my STP I use Reckon Payroll App Basic. I am the only employee. I have salary sacrificed an amount into my super from my business. When entering this in the app it comes up in the deductions and the superannuation area in the pay run. My net pay is then shown as a negative number and so it is not letting me mark as paid.

Could you please let me know how to solve this. Thanks, Mark

Rav

Hi @MSNMultimedia

How are you entering/creating the pay run in the app? From what you've described, it sounds like you're entering a salary sacrifice amount that is larger than the amount of earnings in the pay run that you're sacrificing from. Is that correct?

The salary sacrifice amount is correlated to the earnings within the individual pay run and won't process if its more than the value of earnings that its sacrificing from.

markng

Thank you Rav.

Yes, I am entering as you show above. The amount is definitely more than the value of the earnings and I note you say it won't process if this is the case.

I have already made the payment to super fund and just need to process STP. Is there anything I can do ? Any suggestions?

markng

Would upgrading from the Basic app allow me to process this salary sacrifice for super ?

Eric Murphy

I imagine this has nothing to do with your app, what you're trying to do isn't correct. How can the employee salary sacrifice more than what they're being paid..? It doesn't make sense which is why you can't do it.

You need to do your pay runs accurately.

Rav

https://community.reckon.com/discussion/comment/20629453#Comment_20629453

No, the plan you're on won't make a difference to this process. As Eric has somewhat alluded to above, the salary sacrifice amount you're entering needs to be accurately correlated to the earnings that the employee is being paid in the pay run.

markng

Thanks Eric, Rav,

Yes, I was overlooking the obvious. Too fixated on entering the salary sacrifice amount and I wasn't entering the earnings amount correctly.

swakhlu01 .

@MSNMultimedia you also need to allow for super guarantee payment of 10% of the gross wages when creating the payrun (on top of the salary sacrifice super amount). Overall concessional superannuation limit includes the 10% Super guarantee and the salary sacrifice superannuation amounts. The STP reporting from Payroll App will be recorded in Employee Income statement as Super guarantee and Reportable Superannuation amount (RESC) for the respective amounts in the Payrun. This is seen in the MyGov ATO account.

You may wish to check with your tax accountant whether in your circumstances there are better options for reporting superannuation contributions through STP. Salary sacrifice superannuation should normally be reported through STP before depositing the amount in the superannuation fund.

markng

Thanks swakhlu01.

Good information and advice.