Salary Sacrificed Super

Libby
Libby Member Posts: 70 ✭✭

Hi all,

I have a problem with PP 2021/22 compared to PP 2020/21. When an employee wishes to Salary Sacrifice some Super. The new software will not allow me to tick the box in preferences to "Calculate Statutory Requirement on Salary Sacrifice (SS)" this option is greyed out. I checked the previous year and it works perfectly.

Without this preference box ticked the Superannuation Guarantee payment (10%) is calculating wrongly.

Is anyone else experiencing this same problem?

Comments

  • Libby
    Libby Member Posts: 70 ✭✭

    @Rav Can you please have a look at my problem?

  • Libby
    Libby Member Posts: 70 ✭✭

    Hello

    Is there anyone who can help me with this Salary Sacrifice problem PLEASE?😥

    @Rav ??

  • nikhilcron
    nikhilcron Member Posts: 1

    hello, can any really help me out?

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  • Rav
    Rav Administrator, Reckon Staff Posts: 15,305 Community Manager Community Manager

    @Libby I'm not sure about this one to be honest, I haven't seen it before either. I've asked the question to our tech support team though so I'll let you know what info I can get from the guys and girls.


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  • Libby
    Libby Member Posts: 70 ✭✭

    Thanks @Rav. 😊Fingers crossed it is a simple fix.🤞

  • Rav
    Rav Administrator, Reckon Staff Posts: 15,305 Community Manager Community Manager

    Hi Libby,

    The below is the response from the support team. If you can let me know the details I'll take it back to the team. They did also mention however it might be easier/better to give them a buzz so they can work through this with you.

    Either way though let me know.

    We need more details -
    Specify what precisely they're Salary Sacrificing. They can't Salary Sacrifice a Super item.
    Check whether or not they've modified the Super % inside the employee records.
    Ask them to rebuild (Recalculate Super and also Change Super % to 10%.)
    



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  • Libby
    Libby Member Posts: 70 ✭✭

    Hi Rav (@Rav)

    Basically the employee wants to pay money into his Super fund from his wages. What else would you call it if not Salary Sacrificing. The Statutory Super has been setup as 10% from 1st July 2021. I also did the rebuild as per Supports instructions. This is getting way too hard for something that should be simple.

    Do you know of any other Payroll Premier user who has employees who want to pay money from their wages into their Super funds?

    I have had several conversations with Dave from Support and he cannot work it out either other than what the ATO's guidelines are with regards Salary Sacrificing Super changes from Jan 2020. He had asked me to put something up on the Community Forum.

    I hope you can help me if not I will have to tell the employee to sort it out themselves. This is not how I work!

  • Kali
    Kali Member Posts: 341 ✭✭✭
    edited August 2021

    Hi Libby,

    Ours is also greyed out; however, calculating correctly - i.e calculating on the pre-salary sacrificed amount.

    Are you only finding it is an issue when setting up a new employee?

    This is quite concerning along with support saying you can't sacrifice a super item?? Since when??

    https://www.ato.gov.au/individuals/super/growing-your-super/adding-to-your-super/salary-sacrificing-super/

    I feel your pain and I too will need this fixed if it's an issue for new employees coming on board.

    Cheers,

    Kali

  • Libby
    Libby Member Posts: 70 ✭✭

    Hey Kali,

    Thanks for your reply once again. Yes it is an old employee wanting to start salary sacrificing using 2021/22 Payroll Premier. Its been ages since I dealt with Salary Sacrifice so am a bit rusty.

    I am hoping I am on the right track but need someone else's input who uses PP.

    EXAMPLE: So say this employee gets Gross $950, he wants to Salary Sacrifice $100 of this. Employer has to pay SGC of 10% = $95. Currently PP 21/22 is calculating SGC of $85 with Salary Sacrifice $100. It looks like PP is calculating the 10% SGC on the Gross less Sal. Sac. amount. Total Super paid to super fund by employer should be $195?

    Where does the Salary Sacrificed Super amount usually appear in the STP report?

    According to the ATO link PAYG is only on the $850 as the $100 is taxed in the employees Super Fund.

    Kind regards,

    Libby

  • Kali
    Kali Member Posts: 341 ✭✭✭

    Hi Libby,

    I agree with all of your calculations - I believe based on your example above the total super amount payable should be $195.00 ($95.00 SGC + $100.00 SS).

    I have a current employee salary sacrificing super and the payroll software is calculating it correct i.e. calculating the SGC on the pre-salary sacrificed gross amount. This particular employee was salary sacrificing before rollover to 21/22.

    Out of curiosity, I set up a dummy new employee in the same file and added a superannuation salary sacrifice deduction and it too is calculating correctly?

    Are you setting up the salary sacrifice deduction under the super tab in their employee file?

    Cheers,

    Kali

  • Libby
    Libby Member Posts: 70 ✭✭

    Hi Kali

    Thank you for your help on this.

    Yes I did setup SS same as your example. In the Super Preferences setting the option for Salary Sacrifice is grey so cannot tick. Is yours? Maybe because you were already using Salary Sacrifice option yours will be ok. I wasn't.

    I am going to try it again this morning but I don't think it is going to work.

    Where does the SS amount appear on the STP report? I assume in RESC?

    Cheers,

    Libby

  • Libby
    Libby Member Posts: 70 ✭✭

    Hi Kali

    Just a thought in your PP 2020/21 is the SS preference ticked if so is your SS preference in PP 2021/22 ticked by greyed out?

    As mine is not ticked last year or this year.

    Cheers,

    Libby

  • Kali
    Kali Member Posts: 341 ✭✭✭

    Hi Libby,

    Sorry for the delay - busy couple of days...

    I would say that is where the error is!

    Mine is ticked in both versions - hope they can resolve it quickly for you.

    2020/21:

    2021/22:

    And yes, reported under RESC in the STP file.

    Cheers,

    Kali

  • Libby
    Libby Member Posts: 70 ✭✭

    Thank you Kali you are a gem!!!

    Phew that is the problem. Mine isn't ticked on either version.

    Cheers,

    Libby

  • Libby
    Libby Member Posts: 70 ✭✭

    Hello @Rav

    My Salary Sacrifice problem has been isolated thanks to @Kali.

    Both Payroll Premier 2020/21 & 2021/22 versions do not have the Salary Sacrifice preference "ticked".

    This is the cause of why it is calculated the SGC 10% after SS has been deducted from the Gross.

    So how can I fix this going forward??

    Regards,

    Libby