How do I setup NON-Super Salary Sacrifice as a Payroll Item in Enterprise: Prof Services 2016?

JadeJade Member Posts: 14
edited August 2019 in Accounts Business Range
Hi, my organisation has been endorsed as a Public Benevolent Institution (PBI), and all employees will commence salary packaging soon. The tax free capped limit for us is (FBT Exemption Threshold) is $15,900 ($31,177 grossed up).  The salary packaged portion of their pay will be paid to an organisation called CBB and administered externally (so it is not going to their superannuation).

Our policy is to continue SG contributions based on the employee's original salary amount (before any pre-tax deduction).

The grossed-up value of all capped limit benefits will need to be reported on their Payment Summary as Reportable Fringe Benefits at the end of the year. 

How do I setup this Salary Sacrifice as a Payroll Item? (Addition, deduction, contribution???)

Thanks in advance!



Comments

  • ZappyZappy Accredited Partner Posts: 4,460 ✭✭✭
    edited August 2019
    Hi Jade. I work for a pbi in Geelong. There is a support note for this. Ill see if I can drag it out. Its a bit messy but its doable.
  • JadeJade Member Posts: 14
    edited September 2016
    Thank you Kevin!
  • ZappyZappy Accredited Partner Posts: 4,460 ✭✭✭
    edited August 2019
    ;)
  • JadeJade Member Posts: 14
    edited October 2016
    Worked it out myself - here it is if anyone needs help in the future :)

    Payroll Item List > Payroll Item > New
    Payroll item type: Deduction
    Name used in payments and payroll reports: Salary Package
    Agency for employee-paid liability: CBB (or whoever administers your salary packaging)
    Enter the number that identifies you to agency: 1234
    Liability account: Wages Expense Account
    Tax tracking type: Reportable Fringe Benefits
    Taxes: PAYG Tax & State Payroll Tax
    Calculate based on quantity: Neither
    Default rate and limit: Amount is to be salary packaged (not including super salary sacrifice amount - that is done differently)

    Go to each participating employee and add "Salary Package item" to "Additions, Deductions and Company Contributions" field. You can also change the $ amount here for individual employees.

    Once you have processed pays, you will then need to go to "Write Cheques" and record the payment of the salary packaged amount to the salary package administering organisation; debiting the Wages Expense Account.

    Cheers.
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