Super Guarantee is being calculated on adjusted gross after setting up Salary Sacrifice for emplyee

BTHOR
BTHOR Member Posts: 5 ✭
edited February 8 in Accounts Hosted

I have set up Salary Sacrifice for an employee, and now his Super Guarantee is being calculated on the adjusted gross amount, and not the gross amount. I'm also seeing that on his payslip, his YTD is the gross earnings and not the adjusted amount after SS has been deducted. Any advice?

Many thanks

Best Answer

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,325 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited February 8 Answer ✓

    @BTHOR

    There's definitely a setup issue somewhere that’s causing it but it can be difficult to identify when not in front of it 🤔

    Your SS Payroll Item is not mapped correctly for STP - It needs to link to SS here:


    Also, make sure this Reduce ... checkbox is NOT ticked in the employee's Super record!:


    If you're still struggling to resolve it, I'm happy to take a look if you want to contact me directly ☺️

    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

    [email protected]

    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!)

Answers

  • Lucas
    Lucas Reckon Staff Posts: 110 Reckon Staff
    edited February 7

    Hi there @BTHOR

    Have you setup your own custom salary sacrifice item or are you using the default/system salary sacrifice item?


    I've ran a test on my own book and SG is calculating on the ordinary earnings as expected rather than after salary sacrifice. See screenshots below.


    Can you give us a bit more on the setup of the items you're using, including any screenshots where possible.


    Cheers,

    Lucas

  • klaura
    klaura Reckon Staff Posts: 67 Reckon Staff

    Hi BTHOR,

    You can also verify that the Salary Sacrifice is configured properly as indicated by the screenshot below by going to Settings>Pay item>Superannuaton. To calculate on gross, make sure the Deduct from Gross checkbox is ticked.

    Best regards,

  • BTHOR
    BTHOR Member Posts: 5 ✭
    edited February 8

    Hi,

    I've taken some screen shots of a pay with and without SS included. You can see how including SS effects the SG

    I believe it is the default. I noticed for some reason when i edited the payroll item there was no option to tick gross, rather than net. I created a new SS payroll item with a different name, when setting it up i had the option to select gross and it made no difference to the payslip. I was still having the same issue

    I have also included screen shots of the SS payroll item set up.



  • klaura
    klaura Reckon Staff Posts: 67 Reckon Staff

    Hi BTHOR,

    Could you also make sure your Super Guarantee is configured correctly? Verify that the setting is set to Gross instead of Net. 


  • BTHOR
    BTHOR Member Posts: 5 ✭
    edited February 8

    Hi klaura

    For some reason this option does not come up when i edit the payroll item for Super Guarantee either

    This is what i get


  • klaura
    klaura Reckon Staff Posts: 67 Reckon Staff
    edited February 8

    Hi BTHOR,

    I noticed this on your screenshot that the Super has Tax tracking set. You don't need to enter a tax tracking type for Super Guarantee. Same goes with Taxes.



  • Acctd4
    Acctd4 Accredited Partner Posts: 3,325 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    @BTHOR

    SG Super needs to be set here to None for STP:

    (Currently, your STP submissions will be incorrectly reporting SG Super under Total Gross!)

    In this window, make sure your SS Super Payroll Item is NOT ticked for inclusion:


    (I think this window is where the issue is - It's currently calculating SG on the SS but as the SS is a negative amount, it's deducting it instead of adding! Note: SG is payable on the Gross Hourly Pay in your Paycheques not on the SS amount, as this SS has been deducted from the gross already)

    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

    [email protected]

    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!)
  • BTHOR
    BTHOR Member Posts: 5 ✭

    Ah yes, the tax tracking has been changed. It was not set to gross up until today when i was in there changing things! Thanks for pointing that out.

    In the section where i include payments in contributions, I only have items selected that are included in the gross hourly pay, nothing more. If there are no issues in how the SS and SG are set up, why is it still calculating SG incorrectly?

  • BTHOR
    BTHOR Member Posts: 5 ✭

    The issue was in the Employee settings! Phew, all sorted now.

    Thank you both for your help! 😄

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,325 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited February 9

    Glad to hear you got it sorted @BTHOR ! 👍🏻👏🏻☺️

    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

    [email protected]

    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!)