One off EOY employer super contribution as salary sacrifice

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GKM
GKM Member Posts: 2

How do you process a one off super payment as salary sacrifice - instead of being paid a EOY cash bonus of $20K the employer wants this is to be salary sacrificed. How is this correctly processed in Reckon accounts hosted?

current YTD wages $100K-

additional payment to be made $20K this is to be paid as super instead of as a cash payment

Thanks

Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,589 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited June 21
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    This doesn’t sound like salary sacrifice - Is it coming off the employee’s GROSS amount or is the employer paying it in ADDITION ?

    Salary Sacrifice is where the amount is deducted (eg “sacrificed”) from the employee’s gross pay to reduce the PAYG tax.
    If the employer is paying it in addition, this isn’t “Salary Sacrifice” (SS) Instead, it will be an “Employer Additional” (EA) Contribution.

    NOTE: Both are classed as “Reportable Employer Super Contributions” (RESC) but they are set up differently.

    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!)
  • GKM
    GKM Member Posts: 2
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    Thanks Acctd4 it is being paid in addition to current wages. Is there anything special that needs to be done to account for this or set up a payroll item for an Employer Addition?

    Thanks

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,589 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    Yes, if you'd like to shoot me an email direct, I'll send you through my how-to guide for correct setup 😊

    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!)