Salary sacrifice contribution - how to?

snags29
snags29 Member Posts: 2 ✭

Gday everyone!
just wanted to confirm a few things. I'm currently using Basic plan in Payroll app.


just wondering how do I make a Salary sacrifice contribution from company to myself (director).


do
I need to upgrade to Premium plan first ? Does this need to be done on a desktop or app has same capabilities? If so, what are the steps after that?


appreciate your assistance.


cheers

Comments

  • swakhlu01 .
    swakhlu01 . Member Posts: 482 Payroll App Expert Payroll App Expert

    @snags29 Based on what I know you can continue to use Basic plan for the current 2022-23 FY and create payruns using the salary sacrifice contribution. In employee settings make sure Salary Sacrifice superannuation is enabled as a fixed amount (not %).

    If you have not done it before, the Gross salary needs to be atleast equal to the Salary Sacrifice super amount so that the app will calculate the correct deductions before calculating the tax payable. The app will also calculate 10.5% of gross salary as Super Guarantee payable. You need to be mindful not to exceed the concessional super limit of $27500 for the FY. This includes both the Salary sacrifice and the super guarantee amounts.

  • snags29
    snags29 Member Posts: 2 ✭

    Thanks

    there seems to be no employee setting options ????

    see screenshots?



  • swakhlu01 .
    swakhlu01 . Member Posts: 482 Payroll App Expert Payroll App Expert

    @snags29 Sorry I should have mentioned in Company settings you can select the Superannuation settings for the Payrun. There are some items that are only available in Premium but you can select the ones you need using Basic edition. When you do the Payrun, include the amount in Salary Sacrifice component. The gross salary must be atleast equal to the Salary Sacrifice super amount. The system will also calculate a 10.5% of the gross amount as superannuation guarantee amount You need to make sure the total superannuation amount (Salary Sacrifice + Super Guarantee) does not exceed the annual Concessional amount limit. ($27500)