STP Phase 2 - Salary sacrifice (SS)

CherylIlling

Hi team,

I cant find my printout from the webinar I attended when upgrading to STP2 regarding setting up the payroll items after searching through everything I've owned for the last 5 years…..

I have employees wanting to salary sacrifice super before EOFY and I'm wanting to confirm I have some details right.

Tax tracking type: Salary sacrifice Super (S)

Taxes: None ticked

Calculate based on quantity: Blank

Gross v's net: Gross

Default rate and limit: Blank (not based on a limit - its a one-off)

Include payments in contribution: None ticked

Does this sound correct?

Cheers, Cheryl

Rav

Hi Cheryl

The only change to the super salary sacrifice item is the new Salary Sacrifice Super (S) tax tracking type introduced for it in STP Phase 2. From your info above it looks like you've already updated the item with the new tax type 🙂

A little more info on this here 👇

https://help.reckon.com/article/12kbjcx6g4-stp-phase-2-tax-tracking-type-changes#salary_sacrifice

Acctd4

Hi Cheryl

Taxes both need to both be TICKED - If PAYG Tax is not ticked, it won't work as it won't reduce the PAYG calculation & the State Tax should be ticked as SS is included for Payroll Tax.

NOTE: Ticking PAYG Tax doesn't always relate to "taxing" a Payroll Item, it just means PAYG tax should be affected (in this case, reduced!) 😊

CherylIlling

Thank you both for your help, that makes complete sense.