Help with salary sacrIfice please!

Suzanne DiStefano

We use Reckon Payroll, we migrated to this in March 2024.

I am having an issue with EOFY reconciliation and employees who have a YTD salary sacrifice balance entered. I am hoping someone can shed some light on please as I cannot my head around it.

I understand how the disaggregation works on the EOFY report and I understand that I need to add the YTD balances to the gross amount in the payroll summary report. I have checked that the YTD figures imported correctly as well. But still for six employees the amount on the EOFY report is higher by exactly the amount of the YTD salary sacrifice.

An example is as follows -

EOFY report shows - GROSS - $88395 + bonus - $9379 = $97,774 total

Payroll summary report shows - $38394 (earnings) + YTD bonus $11552 + $YTD normal hours $35736 = $86,222 total.

As you can see the EOFY report is higher by $11,552 - the bonus figure which was paid in full as salary sacrifice (and is shown in the YTD salary sacrifice). I have three other employees with an identical scenario where the bonus went fully to salary sacrifice. I have two other employees who have the same problem in terms of the EOFY report being higher but they don't have a bonus, just normal hours.

An example of this is as follows -

EOFY report show - Gross - $93728.48 + leave $4534.92 = $98263.40

Payroll summary report show - $34884 (earnings) + YTD normal hours $50425.74 + YTD annual leave $5232.60 + YTD carer's leave $156.06 = $90698.40.

The difference is $7565.36 which is the YTD salary sacrifice amount.

Is the EOFY report adding the salary sacrifice into the Gross amount twice?

Thank you :-)

Rav

Hi @Suzanne DiStefano

Under STP Phase 2, the ATO want to see the total gross as is ie. prior to any before-tax deductions.

I'm assuming the balance of that bonus pay was paid prior to your switch to Reckon Payroll (and subsequently STP Phase 2 as well), is that correct?

Suzanne DiStefano

Hi Rav,

Yes, that is correct, all payments in both scenarios where we are out were made prior to STP2/switch to Reckon payroll.

Kind regards,

Suzanne