RECS Reportable Employer Contributions Set Up

missjane

I am trying to set up RESC but the advice I get is confusing.

I have set up the payroll item and ensured the employee is allowed RESC. What is the tax tracking type to make sure its uploaded to STP Correctly. So far on line advice says either SS or none ????????????????????? Any advice appreciated.

Acctd4

Hi @missjane

RESC is short for Reportable Employer Superannuation Contribution & covers any reportable super payments that are not compulsory employer amounts. Therefore, the type of RESC determines how it's configured, due to the difference in reporting & tax consequences.

The 5 most common Super types are:

Employer Super Guarantee (SG) :

This is the compulsory, employer obligation for super to be paid into an employee's super fund. This one is NOT reportable as it is not yet accessible/taxable to the employee.

NOTE: An employer super amount can be higher than the legislative percentage but still NOT be reportable/RESC if it is workplace-standard/not employee-specific *

• RA Super Category Type: Super Guarantee Act (SA)
• Tax Tracking Type: None
• Taxes: Tick State Payroll Tax ONLY

* Additional Employer Super Guarantee (SG):

This is where an employepay compulsory super above the legislative obligation.

eg Some govt departments pay compulsory employer super of 15% for their employees. In this scenario, the full 15% would still all be considered SG (eg not 12% SG & 3% RESC !) This is because it applies to ALL staff automatically, rather than being a perk that only certain employees are eligible for!

• RA Super Category Type: Collective Agreenment (CA)
• Tax Tracking Type: None
• Taxes: Tick State Payroll Tax ONLY

Employer Additional (EA):

This is when an employer makes additional, employee-influenced contributions - above their standard employer obligation - to an employee's super fund.

NOTE: Although this one does not impact the employee's gross pay or PAYG tax specifically at that time, because it's still an additional, non-monetary benefit/reward, it's reportable … as it is taken into account when determining certain liabilities, benefits & offsets.

• RA Super Category Type: Employer Additional (EA)
• Tax Tracking Type: None
• Taxes: Tick State Payroll Tax ONLY

Voluntary (After-Tax) Contribution (MV):

This is when an employee has a portion of their net pay paid into their super fund (rather than making the payment directly, themself)

This one is NOT reportable … because it is not creating any tax benefit (reduction) to the employee's pay.

• RA Super Category Type: Member Voluntary (MV)
• Tax Tracking Type: None
• Taxes: [None]