Trying to do EOFY finalisation but exempt benefits showing as salary sacrifice on submission form.

G Johns

We are a charitable organisation and our employee gets exempt benefits paid, but this figure shows as salary sacrifice on EOFY submission. What can be done to show total exempt benefits on EOFY finalisation submission and delete salary sacrifice figure? If $ figure shows on employees payment summary as salary sacrifice it can impact his tax/medicare levy.

Rav

Thanks for that @G Johns

I wasn't sure about this one in all honesty so I've had a chat with the product team who have given me a bit of guidance which I'll explain below, however with that said, they've also advised that its recommended you speak with an accountant and/or tax agent in regard to the make-up of your pay runs in order to ensure you're using (and reporting) the correct items based on your requirements.

Ok, so since you have created this item as an Other-type deduction item with the option to deduct from gross before calculating withholding, it is reported to the ATO as Type O which is salary sacrifice agreement. This is the reason why those balances using your custom Exempt Benefits deduction item are appearing attributed to salary sacrifice in the EOFY report.

I'd also recommend reviewing the information from the ATO in relation to this HERE and HERE.

Rav

Hi @G Johns

How are you paying these benefits to this employee in the pay run? ie. what items are you using? A custom item that you've created yourself or are you using the default salary sacrifice for super item?

If its a custom item that you've created and are using in the pay run, can you provide some info and screenshots on the setup of this item(s). You'll find this by going to Settings ➡️ Pay Items ➡️ Select the item and click the Edit icon.

Take a screenshot that shows the full configuration including any optional settings.

G Johns

Thanks for responding so quickly. Hope these are the screen shots you requested.