Salary Sacrifice Super is not showing on any reports under 'Employer Taxes & Contributions'

Hi, I have paid Salary Sacrifice super for the first time this year. I set it up as a new payroll item: Type: Super, Called: 'Salary Sacrifice Super' - Liability account 'Payroll Liability' (Other Current Liability)... payable to our Clearing House Fund.

It came up to pay under the pay liabilities at the end of the quarter when I paid the supers so I didn't think anymore of it, however I am now trying to reconcile all the Expense/Payroll Reports before processing EOF year and the Sal Sac Amount is showing on the payroll summary as a 'Deduction from Gross Pay' however it is not showing in the 'Employer Taxes and Contributions' .. is it supposed to be?

When creating the payroll it doesn't give you an option to post it to an expense account as it does when you create a new super fund (eg. superannuation expense account).

Accepted answers

All comments

Kris_Williams

It’s not an expense, it simply reduces the gross and basically disappears, except for the liability account that should zero out after paying it

Kyle

Thanks for responding Kris. I am following the manual received from the webinar for the 'Payroll & stp end of year processing' and all the examples used for reconciling the payroll summary and profit and loss, the Salary Sacrifice show as follows:

On the The Payroll Summary - it shows in 'Deductions from Gross Pay' & also under 'Employer Taxes and Contributions' at the bottom of the report. On my payroll summary, it shows in 'Deductions from Gross Pay' only .. but not under the 'Employee Taxes & Contributions'.

On the Profit & Loss in the manual - the 'Total Salary & Wages' equals the 'adjusted' gross pay on the payroll summary ie. the gross minus the salary sacrifice amount, whereas my P&L total for Salary & wages includes the salary sacrifice amount. Also in the manual example, the salary sacrifice super shows as a separate expense (above the Superannuation paid for the year), whereas I only have the Superannuation total for the year showing (which doesn't include the sal sacr amount).

Am I missing something in the set up or when I processed the pay perhaps.. that hasn't linked in my accounts somewhere??

When I paid this particular person I entered their 'Earnings' as per normal and then in the 'Other payroll items' box I added the Salary Sacrifice Super and the amount.. which seemed to correctly reduce the gross amount and calculated the correct amount of PAYG to be deducted. Should I have done something else?

My Super report by Employee, the amount is in the 'Amount' column as SS and also in the RESC column. On the payment summary, it is showing separately in the RESC box (and it is not included in the Gross Total box).

Hope this makes sense, thanks.

Acctd4

Hi Kyle

Salary Sacrifice (SS) amounts are part of Gross Wages, the employee is just redirecting a portion of it. Therefore, it's not actually an additional "Expense" to the employer. However, some people like to map it to it's own expense account, separate - but not in addition to - their Wages expense.

On the Payroll Summary, SS should show as a Deduction from Gross Pay however, Employer Additional (EA) Super will not, as this is paid by the employer in addition to the normal Super. NOTE: Both of these are classed as Reportable Employer Super Contributions (RESC)

Like ordinary Super, SS RESC is still a liability though & most of us like to show it separately there, to differentiate between the different Super types.

If you add it to the Employee Super record ...

... it will populate automatically, just like the normal Super:

Have a look at your Payroll Item List & if not displayed already, add in the Liability Account & Expense Account columns (by right-clicking in the list & selecting Customise Columns, then "Add" these) This will show you where they are mapped to - Expense Accounts will show on the P&L (Liability Accounts show on the Balance Sheet)

" ... My Super report by Employee, the amount is in the 'Amount' column as SS and also in the RESC column. On the payment summary, it is showing separately in the RESC box (and it is not included in the Gross Total box) ..."

Yes, that's correct - On the Super Report by Employee, it will show ALL super under the Amount column. Adding in the RESC column will show those amounts that are specifically SS/RESC in that column also.

Kyle

Thank you for replying Shaz. By all your examples I have entered everything the same so I am completely lost as to why my SS amount is not showing in the 'Employer Taxes & Contributions' section on the bottom of my Payroll Summary or is not included in the Total 'Superannuation' paid in my P&L (it is the SS amount less) ??

Thank you for your help anyway.

Acctd4

Hi Kyle

Because the employee is paying it (out of their gross pay), NOT the employer.

The full GROSS (wage) payment will be in your Salary & Wages Payroll Expenses on the P& L so the wage itself is being claimed ☺️

Kyle

That makes sense, thank you. Seeing it in the Manual has given me the bum steer. I appreciate your help.

Acctd4

No problem Kyle, happy to help 😊

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