Adjustment to STP file for one off super salary sacrifice

Lori RyanLori Ryan Member Posts: 8

An employee had a one off payment of $25,000 end of June to be treated as super salary sacrifice. I did not put it thru payroll, STP files have been sent for end of June and EFY. How do I go about fixing this. I think I have set up the super salary sacrifice correctly in payroll items and the employee. Now need to redo the actual entry and then resend STP file. Does it get added to the normal salary in gross and then as super salary sacrifice. No PAYG as that has already been finalised for the year. How do I do the STP file. The accountant wants the 2020 STP file amended also to reflect the super salary sacrifice, is this possible being 2020.

Comments

  • Kris_WilliamsKris_Williams Member Posts: 2,030 ✭✭✭✭

    According to what I have read - Redo and submit the EOFY and it should overwrite the original amounts

  • ZappyZappy Accredited Partner Posts: 4,806 ✭✭✭

    Id ring the ATO. The eofy was due August 15

  • Kris_WilliamsKris_Williams Member Posts: 2,030 ✭✭✭✭

    Lori, did you mean 2020 year?

  • Lori RyanLori Ryan Member Posts: 8

    the accountant has asked me to do the adjustments for both 2020 and 2021. I had already sent the STP for both EOFY. He said it needs to show up in gross salary amount and as salary sacrifice super. I have been thru all the blogs trying to work out how to do this.

  • Kris_WilliamsKris_Williams Member Posts: 2,030 ✭✭✭✭

    It sounds like you have done the changes correctly in payroll, increase gross and also salary sacrifice. Have you tried resending the EOFY finalisation, checking the figures beforehand to make sure they have been updated correctly.

    another thing you can check after you have made the changes is the old Payment Summary, not required nowadays but a good tool to make sure the salary sacrifice is appearing in the right section as RESC

  • Lori RyanLori Ryan Member Posts: 8

    Would I send just the EOFY file?

  • Kris_WilliamsKris_Williams Member Posts: 2,030 ✭✭✭✭

    That is what I would do, and afterwards ring ATO. But as Zappy suggested you may want to ring ATO first

  • Acctd4Acctd4 Accredited Partner Posts: 1,389 ✭✭✭
    edited September 20

    Just to clarify, Salary Sacrifice amounts (Super or otherwise) should DECREASE from the gross salary amount label & be shown at RFB (or RESC, if Super) instead, NOT display in both.

    I’m hoping that advice has just been poorly communicated to you because if the accountant is telling you the SS amount should be shown at both, I can categorically say that is definitely incorrect & will have significant dire tax liability consequences for the employee - The complete opposite of the purpose of SS! 😳

    The term “Salary Sacrifice” means just that - To sacrifice an amount, for a tax benefit. This is achieved by “sacrificing” that amount from the gross salary to reduce the employee’s overall tax liability.

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper *** (specialising EXCLUSIVELY in Reckon Accounts / Reckon Accounts Hosted!)

    * Regd BAS Agent (No: 92314 015) * ICB-Certified Bookkeeper * Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services Ballajura, WA

    0422 886 003

    [email protected]

    https://www.accounted4bs.com/

    (NB: Please mark your post as Accepted Answer/Answered if I have been able to resolve your query as this helps others when seeking solutions!)

  • Lori RyanLori Ryan Member Posts: 8

    I haven't done anything yet to the file. The original amount was just done as an expense - extra employer super, at that stage I wasn't told it would be salary sacrifice, just now when they are doing the company tax return, the employee is the owner so reducing their tax. So by changing the payslip to include the super it then adds to wages expense and super liability creating a double up . I am thinking do a journal to zero that out instead of trying to reverse the original payment and muck up bank recs. Now I am concerned of how the pay is adjusted to how the gross will be effected and whether it will come out correct for the employees tax purposes. How do I set it up in payroll items so it comes out correctly. I have spent hours trolling thru the internet and Reckon and just getting more confused with the different answers. I have set up the payroll item as super salary sacrifice, hopefully correctly, I was thinking you would add the $25,000 to salary and do the $25,000 to super salary sacrifice, you are saying this would be incorrect so how would you do it to make sure the gross salary is correct for tax purposes.

  • Kris_WilliamsKris_Williams Member Posts: 2,030 ✭✭✭✭

    I’ll stand corrected but I think we are all saying the same thing, that is to increase the Gross and deduct SS, this won’t change the original amount. However on the payment summary the 25000 will not be included In gross and the SS will show at RESC.

  • Acctd4Acctd4 Accredited Partner Posts: 1,389 ✭✭✭
    edited September 21

    @Lori Ryan Yes, that’s correct - on the PAY itself, you do add the salary amount line (& the RESC line is added in the 2nd section down) This then reflects on the actual STP submission correctly as per my previous comment 😁

    He said it needs to show up in gross salary amount and as salary sacrifice super” was a bit confusing 🤔😆

    Take out the stand-alone expense you’ve entered manually as processing the pay for it will (correctly) create the same expense via Payroll. The liability is also correctly created at that time as you then “owe” that Super amount to the Super fund ☺️

    (If you don’t want to impact your Bank Recs, you can Adjust Payroll Liabilities to remove that liability - selecting “Do not affect accounts” - however the Paycheque is going to affect it anyway) 😬

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper *** (specialising EXCLUSIVELY in Reckon Accounts / Reckon Accounts Hosted!)

    * Regd BAS Agent (No: 92314 015) * ICB-Certified Bookkeeper * Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services Ballajura, WA

    0422 886 003

    [email protected]

    https://www.accounted4bs.com/

    (NB: Please mark your post as Accepted Answer/Answered if I have been able to resolve your query as this helps others when seeking solutions!)

  • Lori RyanLori Ryan Member Posts: 8

    Thank you Chris and Shaz I have now made the adjustment and everything looks OK.

  • Kris_WilliamsKris_Williams Member Posts: 2,030 ✭✭✭✭

    That’s great, a relief I’m sure

Sign In or Register to comment.