Salary Sacrifice setup

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Colin_9804729
Colin_9804729 Member Posts: 3

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
    Kris_Williams Member Posts: 3,480 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited July 2023
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    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
    Colin_9804729 Member Posts: 3
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    Thanks but isn't SS on gross not net payment?

    I got it to work though so thanks again

  • Kris_Williams
    Kris_Williams Member Posts: 3,480 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    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
    Kris_Williams Member Posts: 3,480 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    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
    Acctd4 Accredited Partner Posts: 3,578 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    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.

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • Kris_Williams
    Kris_Williams Member Posts: 3,480 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    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