Co Conbritions for Super after tax

FunnellChiro

I have 2 employees who add extra into their super after tax (currently co contribution/co payment - we pay it with our company super payment). Do these payments get a Tax Tracking Type like Bonus ? It is recorded in Deductions from Net Pay.

Tonya gets pay of 1029.50 Gross, taxes of 242.00, Net is $787.50 . Super co payment -20.00,

Net Pay becomes $767.50

Super paid to Super company increased $20

Many Thanks

Bruce

I do not understand why things are being managed in the way you have described.

Additional contributions paid by reducing net pay are called “salary sacrifice” contributions. Hosted specifically accommodates these. They have the benefit of reducing the amount of tax paid by the member, so example above net pay will increase slightly

FunnellChiro

They are not Salary Sacrifice. The employees started this years ago to top up their super when the govt was matching after tax contributions & Quicken help set it up for us this way.

Acctd4

These should be set up as Co-Contributions under Super Contribution (Company & Employee Contribution):

Link them to a Super CC liability sub account (under your Payroll Liabilities header account):

... Linked to None under Tax tracking & with NO PAYG or State Payroll Tax selected!

TIP: Don't enter the employee-specific $ amount on the Payroll Item itself - Payroll Items should be generic enough to be able to be used for any employee. Instead, add the employee's specific amount on their own Super record:

Bruce

@FunnellChiro , sorry I rushed through when reading and totally missed your comments about the employees getting co contributions. Shaz's advice above is spot on

my apologies

FunnellChiro

It is presently set up like this but what with the Tax Tracking Type be in STP2? Does it have a Tracking type like Bonus ?

FunnellChiro

Sorry just saw the Tracking as NONE. Thank you that helps!