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Salary Sacrifice setup

Colin_9804729

Sorry if this has been asked before but I couldn't find exactly what I was looking for in the search.

I'm struggling to get an 'employee' setup.

This employee receives a single payment per year (at the end of the tax year) otherwise has no salary. Not sure if I should therefore treat it as a bonus or director payment rather than annual salary but either way the maximum payroll period I can use is a month.

I want to salary sacrifice the entire payment but from my understanding you can't now do this as you have to make the SG payment first.

Ok, fine, I set the SG to 10.5% and the SS to 100% but then the SS is taken out first in payroll and nothing left for the SG. If I set the SS to 89.5% then the SG only takes 10.5% of the remainder

How do I get it to process the SG first and then SS the remainder, e.g. if the payment was $1000 take the $105 SG first and SS the remaining $895?

Thanks

Comments

Kris_Williams

i had an employee who salary sacrificed the entire pay, I entered the rate, salary or hours, Reckon calculated the SGC and tax and I entered the salary sacrifice to be the entire net balance so the payment was zero

the SGC is over and above the Gross so if you want the entire pay to be 1000 inclusive of SGC you will have to enter the gross as $905. That will calculate the super as 95, then the tax and you can then manually enter the SS to equal the net

Colin_9804729

Thanks but isn't SS on gross not net payment?

I got it to work though so thanks again

Kris_Williams

There is a choice in Reckon for SGC, but don’t know the legality.

super guarantee has a choice, but salary sacrifice is the amount determined by the employee

Kris_Williams

Salary sacrifice is whatever employee wants it to be, SGC has a choice in Reckon to be on either Gross or Net, but I think it depends on the contract or terms of employment, don’t know what ATO says

Acctd4

Hi Colin

You can definitely SS an entire Gross amount on a Paycheque. You're correct Colin - The SG isn’t deducted from the gross (like the SS is) - & it’s (always) calculated ON the gross.

Kris_Williams

I agree with you Shaz, but I wasn’t sure exactly what he wanted to do, I thought he wanted the total gross including SGC to be 1000. The choice in Reckon of calculating SGC on Gross or net is also confusing

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