Salary Sacrifice

Marina Di Rosso

Hi, I have set up salary sacrifice for an employee. He is contributing a weekly amount of $150.

Do I need to record this at all in e.g. Expense?

TIA for any assitance.

Alexis McKeown

Dear @Marina Di Rosso ,

Salary Sacrifice is handled in Reckon Accounts as such:

1. Go to Lists.
2. Go to Payroll Item List.
3. Right-Click → New.
4. Create a Super Contribution type item.
5. Name this item Salary Sacrifice, or SalSac.
6. In the Super Contribution section, change it from Super Guarantee Act (SA) to Salary Sacrifice (SS).
7. In the Tax Tracking type section, change this to Salary Sacrifice Super (S).
8. Mark it for PAYG Tax.
9. From here, the item is completed.

Next, you will want to add this to your Employee's record:

1. Go to the Employee Centre.
2. Right-Click → Edit employee.
3. Change Tabs to Payroll and Compensation Info.
4. Go to Super Details.
5. Add the Salary Sacrifice item to their Super Details, along with any other relevant Super details.
6. Set the rate to 150.
7. Ensure that the two checkboxes at the bottom are left UNTICKED. Ticking either will prevent Salary Sacrifice from working.
8. Press OK.

From here, whenever you pay your employee, they will have $150 deducted from their Gross, and put into Super.

Kind regards,

Alexander McKeown

Reckon Senior Technical Support

Marina Di Rosso

Hi Alexander, Many thanks for your reply.

I have done all that and it is working.

I just need to know if I need to record it in Reckon as I do for our quarterly super as an expense?

Best regards Marina

Kris_Williams

depending on the setup of the payroll item it should go to the super liabilities account. You can enter a bill and post to the liability account or you can just enter the payment to this account. It’s not an expense at all

Marina Di Rosso

Thanks for your help Kris, that's great.