With salary sacrifice, how do I get correct super contribution amount in STP Phrase 2?

Belle

Hello, since upgraded to STP Phrase 2, I found that I could not get the total amount of super contribution right when there was salary sacrifice.

Please see attached photo.

Total super amount should be 11% of total of (Ordinary pay amount $3960 + Salary sacrifice $500) = $490.60. But the above photo showed $935.60.

When I was in STP phrase 1, I used to use "Gross Pay" and add $3960 & $500 together = $4460 to get the total super figure. In STP phrase 1, it still showed correct Total gross pay $3960 in employee's YTD summary.

In STP phrase 2, it showed Total gross pay $4460 in employee's YTD summary.

Please advice what I should do. Many thanks!

Rav

Hi @Belle

The calculation from your screenshot above is correct. Super Guarantee is calculated from the earnings component in the pay run which in this case is Ordinary Earnings of $3960.00.

It does not also take into account the portion attributed to salary sacrifice since that is going to super as a 'sacrifice' of the earnings and is listed and reported separately as Reportable Employer Super Contributions (RESC).

There hasn't been any change in this over STP Phase 1 or 2. STP Phase 2 is the reporting of additional information pertaining to the employee and pay item components only.

Belle

Do I still add salary sacrifice amount onto ordinary earnings as gross pay to get super calculation right?

I thought employers need to pay 11% super contribution with salary sacrifice amount.

Rav

Do I still add salary sacrifice amount onto ordinary earnings as gross pay to get super calculation right?

The super calculation as shown in your screenshot, is right.

Super Guarantee, now 11% from the 2023/24 financial year, is calculated from earnings. If the employee then chooses to salary sacrifice some of those earnings to super its attributed as RESC.

Belle

The employee's fortnightly Ordinary earnings was originally $4460. It was agreed that the employee salary sacrifice $500 and got $4460- $500 (salary sacrifice)= $3960 Ordinary earnings.

The ATO website had advised, "Your salary sacrificed super contributions are additional to your super guarantee entitlements. Your employer must still pay your full super guarantee entitlements as though there was no salary sacrifice."

How do I get the super contribution amount correct because the screen shot I provided did not pay 11% super on the salary sacrifice amount?

Rav

If the employee's ordinary earnings are $4460.00 then that's what you need to enter as their earnings. Super Guarantee will calculate based on this balance.

Then if a sacrifice of those earnings is being made, add the $500 into the salary sacrifice field so it's attributed to RESC. Salary sacrifice is not an earning, it's a sacrifice of earnings.