One off EOY employer super contribution as salary sacrifice

GKM

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

Zappy

Did you look in the help files? Its really no different in concept from ordinary salary. You need to set up the salary sacrifice payroll item and net off the bonus to the superannuation.

Call me if you get stuck

Zappy 0407 744 914

Acctd4

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.

GKM

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

Yes, if you'd like to shoot me an email direct, I'll send you through my how-to guide for correct setup 😊

Zappy

Oh the perils of getting tax advice from a software group. My word.