Salary Sacrifice Setup & Question

We have an employee who is Salary Sacrificing a set amount each week - prior to 2024 Reckon upgrade, the system was calculating the SG amount correctly ie calculating on gross before SS - however after the upgrade, the SG 11.5% is now calculating on gross less SS amount. I have checked the employee's details and the Box is unticked "Salary Sacrifice Items: Reduce Employer Contributions (SA_CA).

This box used to say SA_SS - What is CA and why is Employer contribution rate calculating after SS deducted?

Comments

klaura

Hi Pivacadmin,

Can you make sure that super item still calculating on Gross by going to List>Pay item list>

I hope it helps.

Best regards,

Karren

Pivacadmin

Both on Gross Pay - both SG Super and the Salary Sacrifice - it was perfect before upgrade

klaura

Have you added a new pay item for this new financial year?

Pivacadmin

No - I haven't added a new pay item. As I mentioned - nothing has changed from the set up in 2023 Reckon. I did the upgrade to 2024 - checked the tax rate was correct and SGA Super Rate was correct. Ran first payroll and noted this employees Super Rate of 11.5% was being calculated on gross pay less Salary Sacrifice amount. Checked nothing has been changed in Employee card, checked payroll item again - Nothing has changed in this area. Also as mentioned the wording in the employee card on the Super section is above per above and last year is did not have CA mentioned, so what is CA and what has changed. Nothing in the tutorials or any of the webinars I have done or the manuals given and I have double, triple checked, Can someone from Reckon assist????????????????????????????🙄

klaura

Hi Pivacadmin,

I suggest Verify and Rebuild the file. Should the issue persist, please Contact Us | Reckon so that we may investigate the data further.

Best regards,

Karren

Pivacadmin

Hi Karren

I will Verify and Rebuild and will check when done and let you know - Thank you

Pivacadmin

I have verified and rebuilt data but no change at all. I have checked in our other Company file and the employee in there who Salary Sacrifices is calculating correctly on gross pay - I have also checked set up of that SS in that Company File and it matches the other one. Do I delete that payroll item and set up a new one and see if that works?

klaura

Yes, we can try deleting the pay item and assign a new one. See if that makes a difference.

Pivacadmin

Woohoo - that has corrected it - I deleted the item from the Employee's card and then made that payroll item inactive. Then created a new payroll item and then added it to the Employee's card. I did a dummy unscheduled payroll for this employee and the SGA amount calculated correctly. Thank you

klaura

I'm glad you got it sorted☺️

Acctd4

@Pivacadmin Just for reference …

CA is Collective Agreement & is usually used for scenarios where a blanket agreement is in place for SG Super that is paid above legislative rates (eg many government departments have a company-wide Enterprise Agreement that employees are paid SG at 15.4% currently)

Ute Coyne-Pollig

@klaura

I have the same issue as

Pivacadmin

and I will try deleting the pay item to fix. I am wondering how many people have the same issue and do not notice until their accountant checks @ the end of FY. This is an update error somewhere that needs to be corrected in the system.

How do I keep the employee's employment history if I need to delete his card to fix this? This cannot be the solution!

I would appreciate a better solution.

Thank you.

Ute

Acctd4

Hi @Ute Coyne-Pollig

You're not deleting the employee, just de-activating that SS Payroll Item & creating a new one to use instead 😊

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